Bermuda US dollar bonds admitted to BSX

By added on 08/08/2013

The Bermuda Government’s US dollar bonds nominally valued at US$750 million, were officially admitted to the Bermuda Stock Exchange today, reports the Royal Gazette.

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 US$750 million in ‘long’ 10-year bonds at a yield of 4.85 per cent — 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.