to mature November 30, and the Finance Minister has advised Parliament that he intends to refinance the borrowing outside of Bermuda at that time.

Dr. Grant Gibbons, in a Ministerial statement on the floor of the House of Assembly on Friday, explained the bond issue dated back to November 1992, when $20 million was raised to finance capital projects through a domestic bond issue, underwritten by the Bank of N.T. Butterfield & Son, Ltd. and listed on the Bermuda Stock Exchange.

Dr. Gibbons said: "These bonds will of course, be redeemed on or before the date of their maturation. Bond holders will in due course receive correspondence from the Accountant General in the Ministry of Finance, confirming details of the intended repayment of the principal and accrued interest.

"Given the low level of US interest rates and our desire not to compete with any local Bermuda Dollar borrowing programmes, the Ministry intends to refinance the bonds from external, US Dollar private placement sources.

"The Government is being assisted by Chase Securities, Inc. as its private placement agent for the refinancing.'' Dr. Gibbons said the new borrowing arrangement did not increase Government borrowing, currently $145 million.

GOVERNMENT GVT