Lucius, it's the opposite
, you
don't make money as an investor if a pandemic appears:
If those conditions are triggered, the bonds are not repaid in full and the money is used instead to help tackle the crisis in developing countries.
The less risky tranche of the bonds will not be paid back to investors if there are more than 2,500 deaths in developing countries as a result of a pandemic. Although China has recorded more than this number of deaths, the World Bank does not designate it a developing country.
By far the riskier of the two bonds is "Class B," which sold $95 million in bonds (compared to $225 million for the less risky "Class A," explained above). For Class B, if the disease crosses an international border and if there are at least 20 deaths in that second country, the investors' money will be paid to developing countries dealing with the outbreak.
It's some sort of insurance, just as the loans from FMI act sometimes.
You as a country are agreeing to pay dividends on those bonds so you can make sure you have money ready when it hits you.
For the investor, it's gambling, if everything is fine and no virus comes out, you gain interest, if it does, you're screwed.