By Marco Aquino

LIMA (Reuters) – Mexico, Colombia, Chile and Peru plan to work with the World Bank to launch a new bond to cover losses in the event of extreme weather, Peru’s finance minister said on Friday.

The bond would be similar to a $1.36 billion earthquake bond that the four countries sold last year through the Pacific Alliance regional bloc they are part of, said the minister, Carlos Oliva.

“What we’re going to do is design a new bond that’s not just for earthquakes, but for hydrometeorological events, climate, the el Nino phenomena,” Oliva told Reuters on the sidelines of an event at the Pacific Alliance summit Peru hosts this week.

Oliva said it was too early to estimate a pricetag for the bond but added it “has to be similar” to the earthquake bond.

“The model for doing this takes time and the World Bank is helping us with that,” he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link