The World Bank has priced a catastrophe bond that will provide Jamaica with USD 200 million of insurance coverage against hurricanes, replacing previous World Bank cat bonds that provided USD 150 million of cover and were fully paid out after Hurricane Melissa struck in October 2025. The transaction was oversubscribed, which allowed the World Bank to increase the size from its initial target amount, and continues Jamaica’s use of capital markets for pre-arranged disaster financing. Issued by the International Bank for Reconstruction and Development under its capital at risk notes program, the bond uses parametric per-occurrence triggers based on a storm’s path and intensity. The World Bank will enter into a risk transfer agreement with the government of Jamaica, which will pay a premium for the coverage based on the terms achieved in the market. The note has an aggregate nominal amount of USD 200 million, is due to settle on May 26, 2026, matures on May 23, 2030, and will be listed on the Singapore Exchange.
World Bank2026-05-18
World Bank prices USD 200 million catastrophe bond for Jamaica hurricane protection
The World Bank, through the International Bank for Reconstruction and Development, has priced a new catastrophe bond providing Jamaica with USD 200 million of hurricane insurance coverage, replacing earlier World Bank cat bonds that provided USD 150 million and were fully paid out after Hurricane Melissa in October 2025. The oversubscribed transaction, issued under the capital at risk notes program, uses parametric per-occurrence triggers based on storm path and intensity, with Jamaica paying a premium under a risk transfer agreement, and will settle on May 26, 2026, and mature on May 23, 2030.