KINGSTON, Jamaica — The World Bank on Tuesday issued a catastrophe bond providing the Government of Jamaica with US$200 million in insurance coverage against hurricanes.

The bond, which was provided through the International Bank for Reconstruction and Development (IBRD), replaces the previous catastrophe bond, which provided US$150 million in coverage and was fully paid out in 2025 following the impact of Hurricane Melissa on the island in October 2025.

In a statement on Wednesday, the Ministry of Finance said the 2026 catastrophe bond attracted strong international investor interest, securing participation from 25 global investors, up from 15 investors in the 2024 issuance.

Issued under the IBRD’s “capital at risk” notes programme, catastrophe bonds enable developing countries to transfer disaster-related risks to international capital markets. Under the arrangement, the World Bank issues the bond and enters into a risk transfer agreement with the Government of Jamaica.

Insurance payouts to Jamaica are triggered if a named storm meets specific criteria for location and severity outlined in the bond terms.

The catastrophe bond forms part of the Government’s multi-layered disaster risk financing strategy, designed to strengthen the country’s financial resilience and support a rapid response following major natural disasters, while reducing the fiscal burden on the government.

Minister of Finance and the Public Service, Fayval Williams, welcomed the successful placement of the catastrophe bond and acknowledged the support of key international partners.

“Jamaica is incredibly grateful to the World Bank for its market guidance and placement of the catastrophe bond across a wide cross-section of global investors. Additionally, Jamaica says ‘thank you’ to the Monetary Authority of Singapore, who will be supporting the transaction financially,” said Williams.

The cat bond is scheduled to mature on May 23, 2030.