Friday 11th September 2026
The Government of Jamaica has returned to the international capital markets with a US$1bn unsecured bond issue as part of a broader strategy to restructure external debt, extend maturities and provide additional financing for the 2026/27 Budget.
According to offering documents filed with the United States Securities and Exchange Commission (SEC), approximately US$600mn of the proceeds is intended to finance a tender and exchange offer for existing global bonds.
The remaining US$400mn will be available for general budgetary purposes, with the new bond expected to be listed on the Euro MTF Market of the Luxembourg Stock Exchange.
The Government simultaneously launched an offer to repurchase portions of three outstanding international bonds with a combined face value of approximately US$2.33bn. These comprise US$837.53mn outstanding on notes due in 2028 carrying a 6.75% coupon, US$250mn in bonds due in 2036 at 8.50%, and US$1.24bn due in 2039 at 8.00%.
“The Invitation is part of a broader programme of Jamaica to proactively manage its external public debt,” the Government said.
The tender opened on 2 September and was scheduled to close on 9 September, with settlement expected by 17 September. Participation is voluntary and the Government can determine how much of each bond series it will accept if tenders exceed the amount allocated for repurchases.
Citigroup Global Markets and Scotia Capital are serving as dealer managers and joint lead underwriters, with Investor meetings started on 3 September 2026.
The transaction is intended to reduce refinancing risks by replacing portions of existing debt with a new instrument carrying a longer maturity. One report indicated that the new bond could mature in 2037, although final pricing details, including the coupon, had not initially been disclosed.
Jamaica undertook a similar liability-management exercise in October 2023, spending US$237.4mn to redeem securities with a nominal value of US$233.2mn. That transaction accompanied the country’s first Jamaican-dollar-linked international bond, valued at about US$300mn, which carries a 9.625% interest rate and matures in November 2030.
The latest borrowing comes amid weaker-than-budgeted fiscal performance during the opening months of 2026/27. Central government revenue and grants for April to July were approximately US$2.23bn, 8% below budget, despite around US$113.8mn in new taxes introduced for the fiscal year.
Tax collections were approximately US$134.5mn below projections, including an estimated US$83.7mn shortfall in corporate taxes. Expenditure, meanwhile, was about US$2.44bn, 6% below budget. The Government consequently recorded a fiscal deficit of approximately US$210.9mn, compared with a budgeted deficit of about US$194.9mn.
Overall financing nevertheless benefited from stronger loan receipts, which reached approximately US$824.2mn and were about twice the amount budgeted.
The Government’s prospectus also highlighted continuing economic risks following Hurricane Melissa, which caused significant damage in October 2025. “The effects of this natural disaster may continue to adversely affect the development and performance of key sectors of the country’s economy,” stated the prospectus. It also warned that geopolitical conflicts and volatility in international energy markets could increase domestic costs and affect growth, inflation and government revenues.
Despite these risks, tourism continues to provide important foreign-exchange support. Jamaica welcomed 2.34mn visitors and earned US$2.5bn from tourism through August 2026, although the sector continues to operate with reduced hotel capacity following Hurricane Melissa.
Regional sovereign borrowing provides some indication of recent market conditions. Trinidad and Tobago refinanced a US$1bn bond in January at 6.50% for 10 years and subsequently issued a US$800mn, 12-year bond carrying a 6.20% coupon.
For Jamaica, the final pricing of the new instrument will determine the extent to which the transaction lowers borrowing costs while extending the maturity profile of its external public debt.
Source: Caribbean Insight – Volume 48, Issue 16