The World Bank has priced a USD 200 million catastrophe bond for Jamaica that renews and expands hurricane protection after the previous USD 150 million cover was paid out following Hurricane Melissa in October 2025. The bond transfers named storm risk to capital markets through parametric per-occurrence triggers based on storm path and intensity, giving Jamaica pre-arranged funding for low-frequency, high-impact hurricane events. Oversubscription allowed the transaction to be increased from its initial target amount. Issued under the International Bank for Reconstruction and Development's capital at risk notes program, the bond sits within Jamaica's wider disaster risk financing strategy alongside budget reserves, contingent financing and insurance. Settlement is scheduled for May 26, 2026, maturity for May 23, 2030, and the coupon is compounded SOFR plus a 0.12% funding margin and a 6.75% risk margin. The notes will be listed on the Singapore Exchange.
World Bank2026-05-18
World Bank prices USD 200 million catastrophe bond for Jamaica hurricane cover after 2025 Hurricane Melissa payout
The World Bank has priced a USD 200 million catastrophe bond for Jamaica under the IBRD’s capital at risk notes program, renewing and expanding parametric hurricane protection after the previous USD 150 million cover was triggered by Hurricane Melissa in October 2025. Oversubscription enabled an upsizing from the initial target, with the bond providing pre-arranged funding for low-frequency, high-impact events as part of Jamaica’s disaster risk financing strategy. The notes, which settle on May 26, 2026 and mature on May 23, 2030, pay compounded SOFR plus a 0.12% funding margin and a 6.75% risk margin and will be listed on the Singapore Exchange.