over-subscription, although those wishing to take advantage of the fixed rate investment still have until noon today to subscribe.

The Corporation of Hamilton has promised that there will be room for all small investors, and that any over-subscription would lead to a reduction in the approved number of bonds from the largest investors.

The bank and the City will almost look to have the bonds listed and traded on the Bermuda Stock Exchange as early as next week.

Bank of Butterfield manager, capital markets, Mr. Bruce Sharpe, said yesterday: "We won't know about that (trading the bonds on the Exchange) until after the offer closes.'' But he said of the offer: "Even if it proves to be well oversubscribed, there is a strong likelihood that small investors will be able to participate.

"The large investors, institutions in particular, will be the ones who are cut back, in order that the small investors can have their orders filled.

"The response to the offer has been exactly as we expected it would be. It has been excellent. It has appealed to everyone from the very small investors to large investors.'' The $6.5-million offer, fully underwritten by the bank, is to pay eight percent per annum on certificated bonds purchased in $2,500-units, in Bermuda or US dollar instruments, through to the maturity date of October 20, 2010.

The bank has underwritten most of the bonds, or fixed income investments in Bermuda, including one for the Bermuda Government and two for the Bermuda Electric Light Company. The four issues combine to total about $37 million.

But Mr. Sharpe said there are a number of other opportunities that are already anticipated for the future.

In fact, the core business of corporate finance for the bank now employs 15 professionals throughout the group, a number that he said is about to triple in the next few months.

Already in the last year, they have carried out 16 transactions in seven countries.

Mr. Sharpe said: "We do have a number of other things on the horizon. It's fair to say that the development of the local capital market is going to be facilitated by the three banks, as well as the brokerage firms.

"As the local stock exchange, with its new regulations, becomes more efficient so it will attract new investors who may not have previously been attracted to such investments.'' Upon the City bond offer closing today, bank staff immediately begin the allocation process, in the event of oversubscription, in order to favour smaller investors.

If the bonds begin trading on the local stock exchange, their trading price will be principally affected by the fluctuation in local interest rates. The bonds were offered to help pay for the financing of the multi-level car park at Bull's Head.

The 200-year-old Corporation of Hamilton financed the construction of the building by obtaining a $4 million bridging loan from the Bank of Butterfield.

The purpose of the offer that closes today, is to raise sufficient funds to discharge the corporation's obligations under the bridging loan and to meet the remaining costs of building the estimated $6,050,000 car park and to enable the City to pay for the bond issue.

The City will pay for the entire scheme through the just introduced on-street parking charges and charges at the new Bull's Head facility.

Mr. Bruce Sharpe