Durrant Pate/Contributor

The Government of Jamaica (GOJ) has successfully raised US$1 billion on the international capital markets, achieving a record-low interest rate in Jamaica’s international market borrowing history.

This feat, which was achieved yesterday, Thursday, September 17, marks Jamaica’s first USD-denominated issuance in more than a decade. The transaction represents the country’s first benchmark transaction since Hurricane Melissa in October 2025. 

The transactions form part of the GOJ’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.

2nd  phase of strategic liability management

The bond issuance represents the second phase of the GOJ’s strategic liability management operation, launched on September 2, 2026, and closed on September 9, 2026. Under 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.

This represents 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 positive results demonstrated continued investor confidence in Jamaica’s debt management programme. Strong demand from both international and local investors supported the pricing of the new bonds at a coupon of 6.25 per cent, with the issuance substantially oversubscribed by approximately 2.5 times. 

The US$1 billion issue has therefore been utilised to finance the tenders, and the remaining proceeds will support the budgetary financing requirement during fiscal year 2026/27. 

Finance Minister pleased

Commenting on the successful capital raise, Minister of Finance and the Public Service, Fayval Williams, notes that it comes “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.”