A $125 million catastrophe bond covering some of the risks of the body responsible for public transport in New York has been listed on the Bermuda Stock Exchange.

It is the second issuance from MetroCat Re, the Bermuda-domiciled special purpose insurer set up to issue the cat bond for the First Mutual Transportation Assurance Co, the New York state-licensed captive insurer and subsidiary of the New York Metropolitan Transportation Authority.

According to the Artemis.bm website, which follows the alternative risk transfer market, the new MetroCat Re 2017-1 cat bond sees the MTA expanding the coverage it will receive from the capital markets, as it adds earthquake coverage to the named storm-induced storm surge risk it secured with its previous deal.

The notes are exposed to parametric factors associated with storm surges caused by named storms and also earthquake risks, both within the New York metropolitan area, across a three-year term.

The notes were eventually priced at a coupon of 3.7 per cent, just below the midpoint of initial price guidance, according to Artemis.