The Bermuda Government today raised $500 million through a sale of ten-year bonds, according to a financial news agency.

A bulletin from Thomson Reuters’ IFR service yesterday afternoon confirmed the sale had taken place, Bermuda’s debut offering on the US dollar public bond market.

Government had been aiming to sell between $400 million and $500 million and the bonds proved sufficiently attractive to raise the full amount.

Government will pay a fixed interest rate of 5.6 percent on the bonds, which are rated AA+ by Fitch and AA by Standard & Poor’s.

The proceeds will be used to pay off short-term debt, a revolving debt facility and for capital expenditure, Government has told investors.

Government borrowing has soared in recent years and total debt outstanding stood at $826 million at March 31 this year.

Read the full story in the Royal Gazette Business section tomorrow.