Finance Ministry officials have completed their trip to several major cities to attract potential investors to Bermuda Government bonds.

And according to one source, Government could be seeking to raise as much as $500 million.

According to a report on the LatinFinance website, the roadshow concluded on Tuesday, having visited Hong Kong, Singapore, London, Los Angeles, New York and Boston. A meeting was also held in Hamilton.

Financial Secretary Donald Scott told The Royal Gazette yesterday: "The non-deal roadshow is complete but the process is still alive. When all the stages have been completed, the Ministry of Finance will be in a position to comment further."

He did not reveal how much Government is seeking to borrow through the sale of the bonds.

According to Latin Finance, Bermuda "was heard coming to market with a $500 million 10-year sovereign bond" on March 22 this year.

Mr. Scott said: "An Offering Memorandum that contains the facts relating to the terms of the deal has not been released."

Accompanying Mr. Scott on the roadshow, which was organised by HSBC, were Assistant Financial Secretary (Economics & Finance) Anthony Manders, director of budget Tina Tucker and economic adviser Hasan Durham.

Government debt has risen to more than $675 million. In the last fiscal year revenues fell short of expectations as the downturn slowed economic activity. Spending was higher than planned, and Government spent almost $40 million servicing debt.

In her Budget in February, Finance Minister Paula Cox announced a rise in the stautory public debt ceiling to $1.25 billion, increasing the amount it can borrow.

How much interest Bermuda would have to pay investors in its bonds depends largely on its credit ratings.

The Island currently has a Aa2 rating and a stable outlook with the Moody's credit rating agency. Fitch rates Bermuda AA+ (stable) and Standard & Poor's give Bermuda a AA rating, with a negative outlook.

The yield on a 10-year US Treasury bond was yesterday around 3.3 percent. The US has a AAA rating, indicating a minimal chance of default. The interest rate Bermuda would have to pay would be higher.