Jamaica Cat Bond Won Trading Risk Award (2022) for Closing the Protection Gap
A catastrophe (cat) bond sponsored by Jamaica and issued by the International Bank for Reconstruction and Development (IBRD CAR 130) was announced as the winner of the “Closing the Protection Gap Initiative of the Year” award at the Trading Risk awards ceremony in London on April 28th, 2022.
This innovative cat bond transaction leverages the World Bank’s unique Capital at Risk (CAR) note program for the benefit of Jamaica. The cat bond issued in July 2021 provides Jamaica with $185 million of insurance cover for three hurricane seasons and compliments Jamaica’s other disaster risk financing instruments increasing Jamaica’s financial resilience against disasters.
The transaction received financial support from the United States through the United States Agency for International Development, the World Bank’s Disaster Protection Program funded by the United Kingdom, as well as the Global Risk Financing Facility (GRiF) funded by Germany and the United Kingdom. The World Bank was proud to bring together Jamaica and donor partners from the UK, Germany, and the US, to bring this successful transaction to market and to help close the financial protection gap for Jamaica.