With a fully subscribed rights offering, the Bank of Bermuda has generated about $19.5 million in new capital, the lending institution revealed yesterday.

But about $975,000, or around five percent, of the proceeds resulted from the distribution of unexercised rights in the form of additional rights. These additional rights were distributed among shareholders who did exercise their rights.

"We are pleased with the outcome of the rights offering, which has confirmed the confidence in the bank shown by our broad shareholder base,'' said Mr.

Charles Vaughan-Johnson, president and CEO of the Bank of Bermuda.

"In recent months we have reached agreement to acquire the private and institutional trust business of Standard Chartered Equitor Trust Group, initiated the establishment of operations in Dublin, Ireland, and formed a subsidiary in Mauritius.

"The new capital raised will place us in a strong position to effectively manage the bank's growth and take advantage of future opportunities,'' he added.

Mr.

Peter Mellor, senior vice president, investment, said, "We have spoken with hundreds of our shareholders during the past several weeks, answering a wide variety of questions...the response from our shareholders was very positive.'' Meanwhile, demand for the unexercised $16 units was higher than supply and the bank filled smaller applications for additional units first.

Most shareholders have received the number of additional units they requested and will be advised of their allotment.

The one unit for 15 shares held offering includes 1,237,812 common shares and 1,237,812 warrants. The latter entitles unit holders the opportunity to acquire another common share in future for $25.

The millennium warrants could raise an additional $30.9 million in capital for the bank from December 31, 1996 to January 31, 2000. That capital is also earmarked for the bank's international business operations.

The warrants are expected to begin trading on the exchange by Wednesday.

The issue was managed by Financial Advisory Services, the Bank of Bermuda Investment Division's corporate finance department. The offering closed on September 27.