Nepal and the World Bank sign a mandate agreement to explore an earthquake catastrophe bond

15 October 2026

Nepal and the World Bank signed a mandate agreement on October 15, 2026 to explore developing a catastrophe bond that would help Nepal access funds quickly in case of a major earthquake. The agreement starts a collaboration to assess how capital markets can support Nepal's disaster risk management strategy. The World Bank Group Treasury will work with the Government of Nepal and market participants to assess the feasibility and potential structure of the transaction. The initiative falls under the World Bank Group's existing catastrophe bond programme, which helps countries transfer disaster risk to international capital markets. The statement describes Nepal as one of the world's most disaster-prone countries and says its broader strategy combines risk reduction, preparedness and financial protection.