The Government of Jamaica has raised the target size for its third catastrophe bond, now aiming to secure $200 million of parametric named storm and hurricane insurance protection from the World Bank facilitated IBRD CAR Jamaica 2026 issuance, market sources have told Artemis.
Recall that Jamaica’s second catastrophe bond had been exhausted after paying out in full due to the devastating impacts of hurricane Melissa in October 2025, which triggered the notes and Jamaica’s government benefited from the $150 million payout within weeks, to aid in the countries recovery.
Now, we’re told that for its third cat bond sponsorship, Jamaica is now looking to make this one its biggest yet, with the target size for the IBRD CAR Jamaica 2026 notes issuance updated to a higher $200 million.
At the same time, we’re told the price guidance for the risk margin (or spread) these new Jamaica cat bond notes will pay investors has narrowed towards the middle of the initial range that was offered.
Jamaica first secured parametric hurricane insurance disaster risk protection from the capital markets through the $185 million IBRD CAR 130 cat bond in 2021.
The government followed up with a $150 million renewal through the IBRD CAR Jamaica 2024 issuance in May 2024, which was the cat bond that paid out in full after Melissa struck the island last year.
As with Jamaica’s previous catastrophe bonds, the new 2026 notes are set to be issued by the World Bank’s International Bank for Reconstruction and Development (IBRD), under its global debt issuance facility and the Capital-At-Risk notes program.
The IBRD Jamaica 2026 cat bond notes are now targeted to provide the Government of Jamaica with a $200 million capital markets supported source of parametric per-occurrence named storm and hurricane protection, that will run across a term covering four hurricane seasons, with maturity expected in May 2030.
For more details on the trigger design, see our Deal Directory entry for this Jamaica 2026 cat bond.
The now $200 million of Jamaica 2026 catastrophe bond notes that the IBRD is offering come with an initial expected loss of 2.48%.
The notes were first offered to investors with a risk margin guidance in a range from 6.5% to 7.25%, which has now been narrowed to an updated range of 6.75% to 7%, we understand.
With the target size for this third catastrophe bond for the country increasing, it is encouraging to see Jamaica looking to secure more protection this time around, to cover more of the potential economic impact of major hurricane disasters that could affect the island nation over the coming years.
You can read all about this IBRD CAR Jamaica 2026 catastrophe bond and more than 1,000 other cat bond transactions in the extensive Artemis Deal Directory.
