For more than a decade, Jamaica has been steadily repairing its finances, bringing down a debt burden that once ranked among the highest in the world. In 2012, the country’s debt stood at a daunting 144% of GDP. Today, under Prime Minister Andrew Holness’ administration, that figure has fallen to less than half, with forecasts pointing to 68% this year and a target of 60% by 2027/2028.
That fiscal discipline loomed large over the government’s decision in September 2024 to launch a $480 million 12-year secured bond, its first Jamaican dollar-linked bond in nearly a decade. The challenge: raise funds for infrastructure without adding to sovereign debt.
“We wanted to come up with a funding program without adding to our debt stock. We have a target of 60-percent debt-to-GDP ratio and we plan to meet or beat it,” says Dian Black, Jamaica’s deputy financial secretary.
The government turned to an innovative structure: securitizing 53.22% of revenues from Kingston’s Norman Manley International Airport (NMIA) through a special purpose vehicle, KingAir, which issued the notes offshore. Black stressed that the structure “did not impact airport management” and allowed Jamaica to raise funds without adding to its debt stock.
The deal created the first synthetic airport credit of its kind in Latin America and the Caribbean—and the largest transportation infrastructure bond in Jamaica’s history. It also marked the government’s second Jamaican dollar-linked international issue since 2019, diversifying its funding sources.
The Ministry of Finance, Airports Authority of Jamaica, and Citi spent five days marketing the bond to top emerging market accounts, generating a strong “shadow book” of demand even before launch. When books opened on September 25, orders flooded in, covering the deal size within 30 minutes.
By the close, the transaction drew 112 orders for $2.5 billion, 5.2 times oversubscribed. Jumbo tickets from US and UK investors anchored the book. Final pricing landed at a 6.75% yield—50 basis points tighter than initial thoughts and 75 basis points above Jamaica’s sovereign curve.
“The response to the transaction was very positive and agencies rated it higher than the sovereign, which is quite significant,” says Black.
Indeed, rating agencies rewarded the structure: both Moody’s and S&P placed the deal one notch above the sovereign, underscoring the credit strength of the securitization.
The proceeds will finance Jamaica’s Shared Prosperity through Accelerated Improvement (SPARK) program, an island-wide initiative to upgrade roads, with roughly $282 million earmarked for investment. The government also plans to replicate the structure for other essential sectors, including potable water and healthcare.
“The same securitization format can be used for other projects,” Black says.
That replication is already underway. In July 2024, Jamaica raised $400 million through a similar bond backed by revenues from Montego Bay’s airport. That 10-year deal priced at 6.6%, upsized from $380 million, and achieved ratings above the sovereign as well—BB+ from Fitch, two notches higher, and Ba3 from Moody’s, one notch higher. Proceeds refinanced debt and funded further infrastructure.
The NMIA securitization showcased Jamaica’s ability to leverage a strategic national asset while keeping debt ratios in check. The SPV structure was designed with robust safeguards: offshore accounts, a debt service reserve account, and a top-up mechanism from the government to ensure timely revenue transfers—without sovereign guarantees.
KingAir was financed beyond NMIA’s current concession, ensuring revenues would continue flowing to the government regardless of future operating arrangements. “This transaction was essential to the government as it allowed us to raise significantly more capital than would have been possible through traditional revenues alone,” one deal participant noted.
With strong fundamentals—NMIA serves 1.7 million passengers annually, connects to 18 international routes, handles the country’s largest cargo flows, and taps into a 2.2-million-strong diaspora—the airport provided a compelling credit story.