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Bermuda US dollar bonds admitted to BSX

(Photo by David Skinner) ¬ Minister of Finance Bob Richards

The Bermuda Government’s US dollar bonds nominally valued at $750 million, were officially admitted to the Bermuda Stock Exchange today.The bond sale allows the Government to fund its projected deficit for the next three years.On Monday the Minister of Finance announced the Bermuda Government had raised the $750 million in ‘long’ 10-year bonds at a yield of 4.85 percent — for a spread to US Treasuries of 225 basis points.He reported that the transaction represents the largest ever bond transaction and lowest ever bond spread for the Government of Bermuda, while “underscoring Bermuda’s continuing ability to lower its credit premium in the market, while funding meaningful size.”He added that the low pricing and very large order book confirmed that the market continues to have a very favourable view of the Bermuda credit story despite ongoing economic challenges and the general volatile global rate backdrop.The official announcement read: “The Bermuda Stock Exchange announces the admission of the following securities to its Official List.Name of Issuer: — Government of Bermuda.Description of Securities: — 4.854% Senior Notes; Due 06 February, 2024.Nominal Amount of Securities: — US$750,000,000 Notes.Listing Classification: — Section IIC — Domestic Debt.Method of Listing:- Offer for Subscription to Qualified Investors.Date of Admission to Listing: — 06 August 2013.Listing Sponsor: — Appleby Securities (Bermuda) Limited.