Nepal, World Bank Forge Partnership to Develop Disaster Bond for Earthquake Risk
Summary
Nepal and the World Bank Group have partnered to explore a disaster bond that would help mobilize funds for earthquake risk and provide quick financing after a major disaster. The study will assess how Nepal can access capital market resources to support relief, rehabilitation and reconstruction efforts.
Key Points
- Nepal and the World Bank Group have signed a terms of reference agreement to study the development of a disaster bond.
- The proposed bond is intended to transfer disaster risk to investors and provide immediate financing after a major earthquake.
- The World Bank Group’s Treasury will work with the Government of Nepal and capital market investors to assess feasibility and structure.
- The mechanism is meant to strengthen Nepal’s earthquake risk management and post-disaster recovery capacity.
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