Butterfield Bank aims to start marketing its upcoming $200 million sale of preferred stock in the week starting May 18.

Chief executive Alan Thompson said last night there had been "strong interest" expressed by potential buyers since the Government-guaranteed raise was initially announced on March 6.

The bank needs to raise the money to comply with the requirements of regulator Bermuda Monetary Authority to provide a sufficient "capital cushion" to withstand a severe economic downturn.

Government has agreed to purchase any of the $200 million offering not subscribed by the private sector by the end of June.