the Bank of Butterfield US$75 million Subordinated Floating Rate Notes.

The launch is designed to enhance the capital and balance sheet positions of the bank and raise its profile in the international capital markets.

By attracting this form of capital, the bank will be poised to achieve its objective of increasing shareholder value.

The make-up of its share register, which is more than 70 percent Bermudian, will not change as a result of this transaction.

The bank's lead manager for the issue is Lehman Brothers and a primary application has been made for the notes to be listed on the Luxembourg Stock Exchange.

The secondary listing on the BSX has been sponsored by Butterfield Securities (Bermuda) Ltd., the bank's wholly owned subsidiary.

The securities are being introduced for listing under the regulations for international debt securities.

Executive vice president and chief financial officer of the bank, Richard Ferret, said, "The Bank of Butterfield is naturally pleased that its debut issue in the international capital markets was a success and that, through the listing of the Notes on the BSX, we are able to demonstrate our continued support for Bermuda Stock Exchange.

BSX listing manager James S. McKirdy added, "The BSX is delighted to list the Bank of Butterfield's Notes. The Exchange is working toward attracting more international debt issuers and listing their securities.''