The Government of Jamaica has returned to the catastrophe bond market for a third time with an issuance from the World Bank’s International Bank for Reconstruction and Development (IBRD), renewing a key part of its disaster risk financing infrastructure after its second catastrophe bond was triggered and paid out in full following Hurricane Melissa in 2025.
The World Bank said the transaction was oversubscribed by investors, supporting an upsizing of its initial target amount, which was reported on by our sister publication Artemis back in April.
The deal was reportedly issued under IBRD’s “capital at risk” notes program, which enables member countries to transfer disaster-related risks to global capital markets. Under the transaction structure, the World Bank issues the bond and enters 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 capital markets.
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