Due to innacurate information, the report on interest payments for Government's planned launch of a $20 millon bond was incorrectly reported.

Interest payments will be paid every six months.

Government is turning to the public to raise cash for major capital projects by issuing bonds for the first time in 20 years.

The five year bond scheme will benefit anyone who buys them because of an attractive rate of interest each year.

In fact, Finance Minister, the Hon. David Saul yesterday described the bonds as the "safest way to invest money on the Island'' and he expects an avalanche of subscriptions from Bermudians, starting Monday.

The idea of the new scheme was first mentioned in the Budget Speech earlier this year.

Dr. Saul said that Government had major capital projects to finance including $70 million for the incinerator and $40 million for the new prison.

"When it comes to capital schemes they should not be funded by tax payers of the day, if they are going to be used by future generations.'' he said.

"In this year's Budget Speech we said we would go out and borrow the money.'' Government already has $40 million in overseas borrowing power and it has agreed to issue the $20 million, five year bond, which will attract a rate of 6.5 percent interest per year.

This will compare favourably with bank rates which do climb to just over seven percent for long-term deposits.

However, Dr. Saul said that because of Government guarantees for the bonds, holders would be involved in the safest saving scheme on the Island.

The Finance Minister said that Government put the bonds out to competitive tender to all three local banks. The Bank of N.T.Butterfield and Son was chosen.

The bank will underwrite the issue and provide technical assistance to the registrar, Accountant General, Mr. Jim Hannam. The bank will also decide how the bonds can be bought.

The subscription book opens on Monday, November 16 and closes on Monday, November 30. The bonds will be issued in denominations of $1,000, or multiples of that figure.

Dr. Saul said: "Internationally 6.5 percent will be seen as an excellent rate of interest. We are really expecting it to be oversubscribed at that rate.

"It will interest people of all shapes and sizes. I can see grandparents and parents buying these for children because they cannot be redeemed immediately.'' Anyone who buys bonds will be given the interest yearly and will get their initial money back after the five years.

The Hon. Dr. David Saul.