The Bermuda Hospitals Board has announced that it will execute full repayment of its 2009 $14 million bond on the date of its next interest payment, 30 June 2003 and The Bermuda Stock Exchange halted trading in the bonds yesterday.

With an eight percent interest coupon, well above average savings deposit accounts, the bonds were an expensive way for the hospital to borrow once interest rates fell.

But they were extremely popular with local investors and were oversubscribed when they were originally issued.

The board has arranged a refinancing of the debt with a financial institution and the term will mirror the six years which the bond had left to run.

Jonathan Brewin, chairman of the board, confirmed that the initiative to refinance stemmed from the fact that interest rates have gone down significantly over the past couple of years: "We expect to save in excess of $200,000 per annum due to the refinancing."