The Government of Jamaica is offering to repurchase up to US$2.33 billion in outstanding bonds across three series, in a debt operation funded by a new international bond sale that closed alongside the tender today.

The buyback, which the Government of Jamaica announced on September 2, targets three dollar bonds: 6.750 per cent notes due 2028, 8.500 per cent notes due 2036, and 8.000 per cent notes due 2039. Jamaica will pay a fixed price per US$1,000 of original principal for each accepted series, plus accrued interest, with US$1,026.25 for the 2028 notes, US$1,170 for the 2036 notes, and US$1,180 for the 2039 notes, all above face value. 

The tender is not conditioned on any minimum participation level, but it is conditioned on the pricing and closing of a concurrent international bond issuance on terms acceptable to the government. The offer opened September 2 and expires at 5:00 p.m. New York time today, September 9, with settlement expected September 17.

 The government has not disclosed whether it intends to retire the bonds in full or accept partial tenders, and the size of the new issue was still undisclosed in the prospectus filed with the U.S. Securities and Exchange Commission as of September 4. The Gleaner reports that Jamaica has authorisation to borrow up to US$1 billion under the new bond, described as a ceiling rather than a fixed target, with proceeds directed first to the buyback and any remainder going to the general budget. That structure means the ultimate scale of the debt retirement will hinge on how the new issue prices. Some reports have pegged the new issue at roughly US$1 billion with about US$600 million earmarked for the buyback, implying only partial take-up of the US$2.33 billion tender; this remains unconfirmed pending final allocation.

Citigroup Global Markets and Scotia Capital are serving as dealer managers on both the buyback and the new issuance, and the new notes are set to list on the Luxembourg Stock Exchange. Holders tendering old notes can obtain a priority allocation code from the dealer managers to seek preference in the new issue, though the government has said no allocation is guaranteed. If total tendered value exceeds what Jamaica is willing to pay, the government may prorate acceptances across one or more series.

The operation marks Jamaica’s first cross-border bond sale in close to three years, a gap that has drawn attention given the country’s post-hurricane fiscal position. The Gleaner noted that Jamaica’s economy is still recovering from Hurricane Melissa, which caused damage last October equivalent to more than half of the island’s annual economic output.

The final allocation, and the coupon on the new bond, are due for confirmation around the September 17 settlement date. Those figures will determine how much of the 2028, 2036 and 2039 debt Jamaica actually retires, and what replaces it on the country’s external debt schedule.