The Blue Capital Global Reinsurance Fund Ltd has raised $21.2 million through a sale of shares.

A placement of of 19,487,560 new ordinary shares will be issued at a price of $1.09 per share, the fund announced in a Bermuda Stock Exchange (BSX) news release yesterday.

The net proceeds raised are expected to be invested in fully collateralised reinsurance-linked contracts and other investments carrying exposures to insured catastrophe event risks.

Most of the capital will be invested in the January 2015 reinsurance renewals, the fund stated.

Application will be made for the new shares to be admitted to trading on the London Stock Exchange’s Specialist Fund Market and on the BSX.

Following admission, the total number of ordinary shares in issue will be 199,105,326.

Jefferies International Ltd is acting as financial adviser and bookrunner in relation to the placing programme.