Kathmandu: Nepal and the World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) signed a mandate agreement on October 15 to explore the development of a catastrophe bond to help Nepal access funds quickly in case of a major earthquake.
The agreement marks the beginning of a collaboration to assess how capital markets can support Nepal’s broader disaster risk management strategy. As one of the world’s most disaster-prone countries, Nepal is working to better prepare for, withstand, and recover from future natural disasters through a combination of risk reduction, preparedness, and financial protection measures.
Under the agreement, the World Bank Group Treasury will work with the Government of Nepal and market participants to assess the feasibility and potential structure of such a transaction.
This initiative is part of the World Bank Group’s established catastrophe bond program, which has helped countries access international capital markets to transfer disaster risk and secure financial protection against natural hazards.
