BNY Mellon wins Turkish cat gig

BNY Mellon has been appointed trustee, paying agent, account bank and custodian for a US$100 million Turkish cat bond transaction designed to protect insurers against the risks of potential earthquakes. Cat bonds are risk-linked securities that transfer a specified set of risks associated with hurricanes or earthquakes from an insurer or a nation state to investors.

In this case, the bonds were issued by Bosphorus Ltd, a Bermuda-based special purpose reinsurer created by the Turkish Catastrophe Insurance Pool (TCIP), the originator of the transaction. Eureko Sigorta AS (Eureko Sigorta) is the institution administrator of the bonds and acts on behalf of TCIP to provide day-to-day administrative services.