Bermuda Government will be talking with overseas investors in the US, the UK and Asia to gauge the market conditions as it weighs up its capital financing options for the 2010/11 financial year, The Royal Gazette can reveal.

The Ministry of Finance has also enlisted the help of HSBC Holdings plc. with this process and yesterday Bloomberg News reported that Government had hired HSBC to arrange a series of bond investor meetings in the US, Europe, Asia and on the Island, according to a person close to the sale. Bloomberg's source said the so-called non-deal roadshow will start on Monday.

Government, whose debt has skyrocketed over the past two years, to approximately $850 million, said it would also be speaking with local investors in a bid to raise funds.

Financial Secretary Donald Scott said: "Ministry of Finance teams will be talking with overseas investors in Asia, the United Kingdom and the United States of America to assess market conditions as the Government of Bermuda considers its capital financing options for the 2010-2011 financial year.

"In due course, there will be similar discussions with local investors. HSBC has been engaged to assist the Ministry of Finance in this market assessment."

Governments sell bonds as a way of borrowing money.

Government had been considering a local bond issue last year prior to coming to the aid of Butterfield Bank with a $200 million guarantee, as reported in this paper in March, and Financial Secretary Donald Scott pointed out at the time that while the issuance of Government bonds had not been implemented yet, it was still under review.

In response to an enquiry from The Gazette yesterday, an HSBC spokesperson said: "Questions of this nature should be directed to the Bermuda Government."