US$75 million of subordinated debt capital through the launch of 10 year floating rate notes in the international bond markets.

Bank chief executive and president Calum Johnston commented: "It is a great statement of confidence in the bank's future and demonstrates the international investment community's recognition of our inherently strong balance sheet and liquidity positions.

"The issue ensures that the Bank of Butterfield remains strongly capitalised going forward and that it will continue to compete successfully in our chosen markets.

"By attracting this form of capital, we will be better placed to achieve our strategic goal of enhancing shareholder value without changing the make-up of our shareholder register.

"This bond issue has not changed the more than 70 percent Bermudian ownership of the bank's shares.'' Lehman Brothers is the bank's adviser and lead manager for the issue.

Application has been made for the notes to be listed on the Bermuda and Luxembourg stock exchanges.