Government plans to hold investor meetings in the US and Europe this week and next week ahead of a potential new international bond issue.Government has said it plans to borrow up to $800 million to cover budget deficits for the next three years. Announcing the plan last month, Finance Minister Bob Richards said the money would be raised this summer through a bond issue divided into two tranches; a local Bermuda dollar denominated one and a US dollar one.Mr Richards said at the time that borrowing for the medium term in the current low interest rate environment will save the taxpayer millions of dollars in financing costs.A Reuters report, citing one of the lead managers, said Bermuda, rated Aa3/AA-/AA-, has mandated Barclays and JP Morgan to arrange the meetings, which will take place in New York tomorrow, Boston on Thursday, Los Angeles on Friday and will wrap up in London the following Monday, July 29.Mr Richards, Finance Secretary Anthony Manders and Director of International Business Travis Gilbert will attend the roadshow.A US dollar-denominated bond issue in the 144A/Reg S format may follow, subject to market conditions, Reuters said.Last month, rating agency Fitch downgraded Bermuda's long-term issuer default rating to AA- from AA, with a negative outlook, citing constraints in sustaining higher debt levels due to a narrow revenue base and underdeveloped local capital markets."Weak economic performance and absence of fiscal adjustment measures weigh on public finances and debt dynamics," said Fitch.The firm, however, underscored the country's strong external creditor position driven by the large external assets held by reinsurance, fund administrators and trust management industries.Analyst Grant Hopkins, portfolio manager for LOM Asset Management, called the Government’s borrowing move wise.“We believe that the Government is wise to approach capital markets at this time to cover the next three years of deficits,” he said. “With bond rates still at historic lows, the Government can lock in attractive financing before rates rise (as they have started to as of late). This strategy has been used by countless issuers recently to take advantage of a low cost of capital — even those that are flush with cash such as Apple.“Furthermore, by financing more than one year at a time, the Government can control and predict one aspect of a multi-year budget.”Diane Newman, co-chair of the Chamber of Commerce Economics Advisory Committee, added: “While few details are available in the announcement, it is good to see that the Government is pushing ahead to raise the funds needed to address Bermuda's outstanding debt. The Chamber has for some time called for a holistic and pro-active approach to this, and this planned bond issue is certainly evidence of what is needed.”Bermuda was last in the international debt markets in June 2012, when it priced a USD475 million ten-year bond at par to yield 4.138 percent or 250bp over US Treasuries, generating some USD1.3 billion in demand,” Reuters noted.“Investors largely shrugged off an ill-timed Fitch downgrade of the credit that same day, finding solace in a relatively attractive pickup to the underlying bonds. On that occasion, HSBC acted as bookrunner, while Butterfield was co-manager.”The bonds have been trading at a wide bid-offer of 96.25-98.25 or 4.63%-4.37% on a yield basis, Reuters said.When asked for comment on the meetings and Reuters report, a Government spokesperson said: “As it does from time to time, The Bermuda Government will be meeting international investors to provide an update on economic/fiscal developments in the Country, and also as part of its process of evaluating market conditions and potential funding opportunities to address its borrowing requirement. Due to Restrictions on Publicity for this process the Ministry is unable to make any further comments.”