MANILA – The Department of Finance (DOF) said on Sunday it is looking at sponsoring catastrophe bonds or cat bonds to finance recovery efforts when natural disasters trike. The DOF said the cat bonds were discussed by Finance Secretary Carlos Dominguez III with executives of Citi Group on the sidelines of the World Bank and the International Monetary Fund meetings held recently in Bali, Indonesia. Under a cat bond, the Philippine government will serve as sponsor, with the World Bank issuing the bond to qualified investors, the DOF said quoting Citi vice chairman Jay Collins. “Depending on the insurance coverage and its trigger, the Philippines as sponsor of the Cat Bonds will get paid the principal contributed by investors if a catastrophe occurs. But if there is no trigger, then investors would make a positive return on their investment in the bonds,” the DOF said. Dominguez also said the Philippines was open to launching peso-denominated securities to offshore investors, and issuing sustainable development goals (SDG) bonds. SDG-linked bonds were launched by the World Bank in 2017 to help finance projects in countries that want to achieve goals such as eradicating poverty or mitigating the effects of climate change.