A $50 million bond issue was today launched by the Bermuda Government.

The senior notes — which will yield at least 4.75 percent and are denominated in Bermuda dollars — are targeted at Island investors and Government said smaller, individual subscription applications will be given priority if the issue is oversubscribed.

The Ministry of Finance will hold special sessions to explain the issue tomorrow at 5.30pm in the Hamilton Princess’ Princess Victoria Room and on Wednesday at the same time in the hotel’s Gazebo Room.

The Bermuda Stock Exchange (BSX) said that Butterfield Securities had been appointed as the sole bookrunning manager for the issue.

Applications for the issue are open to Bermuda residents “subject to the laws of any applicable jurisdiction and persons with Bermudian status who may be permitted without further action by the Government and under the laws of their respective jurisdiction of residence to subscribe for securities of this nature”.

The BSX said the interest rate will be dependent on market demand, but will be at least 4.75 percent and that the minimum subscription will be $10,000.

Butterfield will accept subscription applications from permitted purchasers until 5pm on Friday.

Subscription applications are available at www.butterfieldgroup.com/govbond2013. Alternatively, e-mail govbond2013@butterfieldgroup.com or through personal application at the firm’s offices at 65 Front Street, or via a broker.

The bonds are expected to be rated at AA-, negative outlook by Standard & Poors and at Aa3, negative outlook by Moody’s, while Fitch is expected to give an AA-, negative outlook rating as well.