The Asian Development Bank is working with Mongolia on the potential to replicate the Risk-Layered Disaster Relief Finance Program it recently implemented for the Kyrgyz Republic and Tajikistan, which puts sovereign parametric risk transfer instruments including catastrophe bonds as part of the conversation.
Recall that the Asian Development Bank (ADB) implemented its first Risk-Layered Disaster Relief Finance Program in those two countries earlier this year, with the project combining Contingent Disaster Financing (CDF) and the first Disaster Relief Bonds (DRB) (or catastrophe bonds) directly issued by the Bank.
The two sovereign catastrophe bonds secured $160 million of capital market-backed parametric earthquake and extreme precipitation disaster risk financing, evenly split between the Asian Development Bank – Kyrgyz Republic 2026 and Asian Development Bank – Tajikistan 2026 cat bond issuances.
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