GOJ Launches J$25.0Bn Benchmark Bond Offering Across Three Tenors

• The Government of Jamaica (GO) has announced an aggregate J$25.0Bn benchmark bond offering through the Bank of Jamaica (BOJ) to support financing for the 2026/27 Budget. The auction opens on Friday, July 24, with bids accepted between 9:00 a.m. and 2:00 p.m., while settlement is scheduled for Tuesday, July 28, 2026.
• The offering comprises three fixed-rate benchmark investment notes across the medium- and long-term yield curve: J$16.0Bn through the reopening of the 9.625% Benchmark Investment Note due November 21, 2031; J$5.0Bn through the issuance of a new 7.50% Benchmark Investment Note due February 28, 2035; and J$4.0Bn through the reopening of the 8.25% Benchmark Investment Note due March 18, 2040.
• The 2031 note carries a 9.625% fixed coupon, matures on November 21, 2031, and will make its first interest payment on November 23, 2026, with semi-annual coupon payments thereafter on May 23 and November 23. The 2035 note offers a 7.50% fixed coupon and matures on February 28, 2035, with the first coupon payable on August 28, 2026, followed by semi-annual payments on February 28 and August 28. Meanwhile, the 2040 note pays a fixed coupon of 8.25%, matures on March 18, 2040, and will make its first interest payment on September 18, 2026, before reverting to semi-annual payments every March 18 and September 18.
• All three securities are available with a minimum investment of J$1,000, with pricing and yields determined through competitive bidding. Non-competitive allocations have been capped at J$800Mn for the 2031 note, J$250Mn for the 2035 note, and J$200Mn for the 2040 note.  The notes are taxable, registered and transferable, and will be held electronically through the JamClear-CSD at the Bank of Jamaica. They will not qualify as regulatory liquid assets, and payments due on non-business days will be made on the next business day.
• The Government's increased presence in domestic capital market in recent months reflects the increased financing requirements arising from the extensive damage caused by Hurricane Melissa and the associated disruption to tax and other revenues. The suspension of the fiscal rule that followed, temporarily halted the debt reduction framework aimed at lowering the debt-to-GDP ratio to 60% and has provided the Government with greater flexibility to increase borrowing to finance reconstruction efforts and to close the funding gap.
• Recent data from the Ministry of Finance and the Public Service (MOFPS) indicate that Jamaica's fiscal position has softened in the early months of FY2026/27, as the economic effects of Hurricane Melissa continue to weigh on revenue inflows. The Central Government recorded a fiscal deficit of J$19.72Bn during the April–May period, significantly exceeding the budgeted deficit of J$11.46Bn. Against this backdrop, the aggregate J$25.0Bn benchmark bond offerings across the three tenors form part of the Government's broader financing strategy to meet its budgetary requirements while supporting ongoing recovery and reconstruction efforts.

(Source: Bank of Jamaica & NCBCM Research)