World Bank Prices Catastrophe Bond for Disaster Protection for Jamaica

Country: Jamaica Source: World Bank Please refer to the attached file. Washington, D.C., May 18, 2026 — The World Bank (International Bank for Reconstruction and Development, or IBRD, Aaa/AAA), priced a catastrophe (cat) bond that finances USD 200 million of insurance coverage against hurricanes for Jamaica replacing the previous cat bonds that financed USD 150 million coverage that was paid out to Jamaica following Hurricane Melissa, which hit the island in October 2025. The transaction was oversubscribed by investors, which supported the upsizing of its initial target amount. The bond builds on the experience of the catastrophe bonds issued by the World Bank in 2021 and 2024, to support Jamaica. For the 3-year 2024 catastrophe bond, a full payout to Jamaica was triggered by Hurricane Melissa in 2025. The pre-agreed parametric triggers based on the storm’s path and intensity were met, demonstrating how these instruments can deliver rapid financial support after major disasters ( press release ). For Jamaica, the catastrophe bond and related risk transfer agreement form part of a multi-layered disaster risk financing strategy, helping to manage the fiscal impact of severe hurricanes while ensuring timely access to financial resources following extreme events. Jamaica is highly exposed to the financial consequences caused by hurricanes, which can have significant impacts on lives, livelihoods, and economic stability. The catastrophe bond provides pre-arranged financing for protection with regard to low-frequency, high-impact hurricane events, complementing other instruments such as budget reserves, contingent financing, and insurance. The catastrophe bond was issued under IBRD’s “capital at risk” notes program, which enables member countries to transfer disaster-related...

Original source: Relief Web