Jamaica returns to global markets with record-breaking US$1 billion bond

The bond, priced at a coupon of 6.25 percent, was substantially oversubscribed by approximately 2.5 times, reflecting robust demand from both international and local investors. The issuance closed on September 17, 2026, and represents Jamaica's first benchmark transaction since Hurricane Melissa struck in October 2025.

The fundraising effort formed the second phase of a strategic liability management operation launched on September 2 and concluded on September 9, 2026. As part of the operation, holders of three outstanding global bonds — the 6.750% bonds due 2028, 8.500% bonds due 2036, and 8.000% bonds due 2039—were invited to tender their holdings for repurchase. The three bonds represented approximately US$2.33 billion in combined outstanding principal.

The offer attracted US$491.1 million in tenders, comprising US$357.6 million of the 2028 bonds, US$131.4 million of the 2039 bonds, and US$2.1 million of the 2036 bonds. The US$1 billion raised will finance the tenders, with the remaining proceeds supporting budgetary financing requirements during fiscal year 2026/27.

Minister of Finance and the Public Service, Fayval Williams, praised the outcome as a vote of confidence in Jamaica's economic stewardship.

"Less than a year after a storm that caused damage and loss equivalent to more than half of our gross domestic product, international investors have chosen to lend to Jamaica at a rate that reflects confidence in this country and in the discipline Jamaicans have shown over more than a decade," Williams said.

The minister noted that the confidence was earned by Jamaican families and businesses through years of difficult fiscal decisions.

The transaction forms part of the government's continuing programme to prudently manage the national debt by extending the maturity profile, reducing refinancing risk in the near term, and reducing interest costs.

The government accepted tenders at levels it considered appropriate and did not pursue repurchases at prices above those levels. As a result, a portion of the higher-interest-rate paper remains outstanding. Those bonds will continue to be serviced in accordance with their terms and may be considered for future liability management transactions, subject to prevailing market conditions.

The successful return to international markets signals growing investor confidence in Jamaica's fiscal trajectory, even as the country continues to recover from the devastation wrought by Hurricane Melissa nearly a year ago.