Bangkok. Nepal and the World Bank (International Bank for Reconstruction and Development, ABRD, AAA/AAA) have signed a mandate agreement to develop disaster catastrophe bonds so that Nepal can quickly mobilize financial resources to address earthquake risk and its loss and damage.

With this agreement, the collaboration has begun to assess how capital markets can be used to support Nepal’s overall disaster risk management strategy. As one of the world’s most disaster-prone countries, Nepal has been working to respond to future disasters through risk reduction, preparedness and financial security measures, mitigate the damage caused by them, and make post-disaster recovery more effective.

Under this agreement, the Treasury of the World Bank Group will work with the Government of Nepal and its investors to assess the financing feasibility and feasibility structure for the development and issuance of such Catastrophe Bonds.

The initiative is part of the World Bank Group’s established Catastrophe Bond Program. The program has been helping countries to transfer disaster risks and provide access to international capital markets to ensure financial protection against natural disasters.

More information about the program can be found on the World Bank Group’s Treasury website under the title World Bank Group Catastrophe Bond Program.