September issue date planned for $50 million in Bermuda bonds
The Bermuda Government's bond issue expected to raise 50 million Bermuda dollars will take place in September.
Finance Minister Bob Richards said: “(It means) the average Bermudian can invest in a Bermuda dollar bond.”
Mr Richards said he would prefer the issue to be offered through the local banks rather than the Government. “It means retail customers can invest in Bermuda dollar bonds; companies, investors, estates — who are not happy with the returns (at present).
The Minister said he could not prejudge what the interest rates would be, and could not say how they would be priced.
He did indicate that the interest rates would probably be in a similar range to the US dollar Bermuda Government bond sale, where demand for the $750 million issue has meant a yield of 4.85 percent.
“There is an appetite among Bermudian men and women for a Bermuda Government piece of paper,” he said.