ADB Issues Inaugural Disaster Relief Bonds Targeting Earthquake and Extreme Precipitation Risk in the Kyrgyz Republic and Tajikistan
Tajikistan, May 4 -- The Asian Development Bank (ADB) issued its first Disaster Relief Bond (DRB) offerings, also known as catastrophe bonds, as part of its regional Risk-Layered Disaster Relief Finance Program which aims to reduce the financial impact of natural hazards and climate-related shocks. The bonds are designed to protect against severe disasters and provide quick liquidity to the Kyrgyz Republic and Tajikistan following a qualifying event. The DRBs will provide rapid and targeted financial support following severe earthquake or flood events, based on predefined and independently verified parametric triggers. After a qualifying disaster in either country, proceeds will be disbursed through national social protection systems to sup...
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