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Kyrgyz Republic and Tajikistan secure first ADB disaster relief bonds to speed up post-disaster response

The Kyrgyz Republic and Tajikistan have become the first beneficiaries of a new disaster risk financing instrument launched by the Asian Development Bank, following the issuance of inaugural Disaster Relief Bonds (DRBs) designed to provide rapid funding after major natural disasters.



The bonds aim to ensure quick liquidity for both countries following severe earthquakes or extreme precipitation events, with payouts triggered by predefined parametric indicators and channelled through national social protection systems to support affected communities.
“When a major earthquake or flood strikes, it can set back development by years,” said ADB Vice-President for Finance and Risk Management Roberta Casali. “With this inaugural sovereign catastrophe bond, our developing member countries in Central Asia gain rapid, committed financing when disaster hits.”
The DRB issuance consists of two tranches, each sized at $80mn with a three-year maturity.
  • The Kyrgyz Republic DRB carries a coupon based on compounded SOFR plus a 4 basis point funding margin and a 600 basis point risk margin. It is priced at par and matures on 30 May 2029.
  • The Tajikistan DRB has an identical structure, pricing, and maturity profile.
The sovereigns involved are the Kyrgyz Republic and Tajikistan.
Both tranches saw broad international participation. For the Kyrgyz Republic bond, 64% was placed in Europe and 36% in the Americas. Investor allocation included insurance-linked securities funds (37%), insurance and reinsurance companies (32%), and fund managers (31%).
For the Tajikistan bond, 60% was placed in Europe and 40% in the Americas, with a similar investor mix: insurance-linked securities funds (36%), insurance and reinsurance firms (33%), and fund managers (31%).
The notes will be listed on the Singapore Exchange.
Aon Securities LLC acted as dealer, initial purchaser, and sole bookrunner, while Munich Re served as sole structuring agent. Analytical and advisory work for the issuance was led by an international consortium coordinated by WTW.
Managing Director for Asia Pacific at Aon Securities, Jordan Brown, voiced that investor demand demonstrated strong support for transferring sovereign disaster risk to capital markets. Munich Re noted that the transaction expands catastrophe bond coverage into new regions and risk types.
The program is supported by the Asian Development Fund, the Asia Pacific Climate Financing Fund, and the Monetary Authority of Singapore’s Insurance-Linked Securities Grant Scheme, funded by the Financial Sector Development Fund.
ADB developed the transactions through regional technical assistance under the Central Asia Regional Economic Cooperation framework, supporting both countries in structuring disaster risk financing mechanisms.
ADB, founded in 1966, is a multilateral development bank owned by 69 members, including 50 from the Asia-Pacific region. It focuses on sustainable, inclusive, and resilient development across the region through financing, policy support, and risk management tools.
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