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Mexico to renew MultiCat catastrophe bond

Posted On: Sep. 9, 2015 12:00 AM CST

The Mexican government has decided to renew the MultiCat catastrophe bond for three more years, BNamericas reported.

The bond provides insurance against hurricanes and earthquakes.

Standard & Poor's Corp. had placed the $100 million bond under CreditWatch in September 2014 as hurricane Odile hit the country and threatened 50% loss to investors.

The Mexican government had also renewed the catastrophic insurance of the country's natural disasters fund in July 2014 with a rate 4.8% lower than in the previous policy.

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