The World Bank has begun work on a proposed project to deliver a parametric earthquake catastrophe bond for Nepal, targeting US $80 million to US $190 million of fully-collateralized disaster risk financing from the capital markets for the South Asian country.
The Nepal Catastrophe Bond Project appears to be in its nascent stages, with preparatory analysis looking at the feasibility and assessing the potential impact of delivery of a parametric earthquake cat bond for the country.
US $20 million of financing is projected as the total cost of the project, to cover the risk transfer premiums and costs of the work.
We understand the proposed project envisages delivery of the design, structuring, and issuance of a three-year parametric catastrophe bond for Nepal.
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