The World Bank has launched a $1.4 billion (£1bn) sustainable development bond covering earthquakes in Latin America.

It is said to be the largest earthquake catastrophe bond on record and will provide earthquake relief for Chile, Colombia, Mexico and Peru.

The bond highlights four of the 17 UN Sustainable Development Goals (SDGs), which includes good health and well-being and climate action.

The deal is part of the World Bank’s broader work in supporting the four countries in managing the risk of natural disasters.

Last year, earthquakes in Mexico is said to have contributed to the worst year on record for insurance losses from natural catastrophes.

The sole investor in the bond is Swedish insurance and investment management firm Folksam Group.