Guy Carpenter Securities has issued the first terrorism catastrophe bond on behalf of British state-owned terrorism reinsurer Pool Re.

The three-year bond is the first insurance-linked security (ILS) to exclusively cover terror risk. It provides £75 million ($140 million) of retrocession protection in the UK.

The bond covers damage from chemical, biological, radiological and nuclear terror attacks, plus cyber attacks.

Guy Carpenter Securities MD Des Potter says the innovative bond was well supported by a global panel of ILS market investors.