Obligation Bermudes 4.75% ( USG10367AF01 ) en USD

Bermudes

100.55 % ▼

Bermudes

USG10367AF01 ( en USD )

4.75% par an ( paiement semestriel )

14/02/2029

Prospectus brochure de l'obligation Bermuda USG10367AF01 en USD 4.75%, échéance 14/02/2029

G10367AF0

15/02/2026 ( Dans 62 jours )

L'archipel des Bermudes, territoire britannique d'outre-mer situé dans l'océan Atlantique Nord, est connu pour ses plages roses, ses récifs coralliens, et son histoire liée à la piraterie et à la Compagnie des Indes orientales.

L'Obligation émise par Bermudes ( Bermudes ) , en USD, avec le code ISIN USG10367AF01, paye un coupon de 4.75% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 14/02/2029

OFFERING MEMORANDUM
GOVERNMENT OF BERMUDA
U.S.$620,000,000
4.750% Senior Notes Due 2029
The Government of Bermuda (the "Government," "we" or "us") is offering $620,000,000 aggregate principal amount of
its 4.750% Senior Notes due 2029 (the "notes"). The notes will bear interest at a rate of 4.750% per year, accruing from November
20, 2018. Interest will be payable on February 15 and August 15 of each year, commencing on February 15, 2019.
The notes will mature on February 15, 2029 unless earlier redeemed. We may redeem the notes, in whole or in part, at any
time prior to November 15, 2028 (three months prior to the maturity date of the notes) by paying the greater of the outstanding
principal amount of the notes and a "make-whole" amount calculated by a calculation agent appointed by the Government. In
addition, we may redeem the notes, in whole or in part, at any time on or after November 15, 2028 (three months prior to the
maturity date of the notes), at a redemption price equal to 100% of the principal amount of notes to be redeemed, plus accrued and
unpaid interest. See "Description of the Notes--Optional Redemption."
The notes will be general, direct, unconditional, unsubordinated and unsecured obligations of the Government and will
rank pari passu with all of its other existing and future unsubordinated and unsecured debt. It is understood that this provision will
not be construed so as to require the Government to make payments under the notes ratably with payments being made under any
other external indebtedness. The notes will be backed by the full faith and credit of the Government. The notes will contain
"collective action clauses." Under these provisions, which differ from the terms of the Government's Public External Debt issued
prior to 2016, the Government may amend the payment provisions of any series of debt securities issued under the indenture
(including the notes) and other reserve matters listed in the indenture with the consent of the holders of: (1) with respect to a single
series of debt securities, more than 75% of the aggregate principal amount of the outstanding debt securities of such series; (2) with
respect to two or more series of debt securities, if certain "uniformly applicable" requirements are met, more than 75% of the
aggregate principal amount of the outstanding debt securities of all series affected by the proposed modification, taken in the
aggregate; or (3) with respect to two or more series of debt securities, more than 66-2/3% of the aggregate principal amount of the
outstanding debt securities of all series affected by the proposed modification, taken in the aggregate, and more than 50% of the
aggregate principal amount of the outstanding debt securities of each series affected by the proposed modification, taken
individually. See "Description of the Notes--Meetings, Amendments and Waivers."
Application has been made to list the notes on the official list of the Luxembourg Stock Exchange and to trading on the
Euro MTF Market (the "Euro MTF Market"). Application has also been made to list the notes on the Bermuda Stock Exchange (the
"BSX"). Estera Securities (Bermuda) Limited has been appointed as the BSX listing sponsor for the notes. This offering
memorandum constitutes a prospectus for purposes of Part IV of the Luxembourg law on prospectuses for securities dated July 10,
2005, as amended.
The BSX takes no responsibility for the contents of this document, makes no representations as to its accuracy or
completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon any
part of the contents of this document.
Investing in the notes involves risks. See "Risk Factors" beginning on page 11 of this offering memorandum.
_____________________
Offering Price: 99.255%, plus accrued interest, if any, from November 20, 2018.
_____________________
The notes have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the
securities laws of any other jurisdiction. The notes will be offered only to qualified institutional buyers in the United States
pursuant to Rule 144A of the Securities Act and to persons outside the United States pursuant to Regulation S of the
Securities Act. For a description of certain restrictions on transfer of the notes, see "Transfer Restrictions" and "Plan of
Distribution."
This offering memorandum includes particulars given in compliance with the listing regulations of the
Luxembourg Stock Exchange and the BSX for the purpose of providing information with regard to the Government.
We delivered the notes to investors on November 20, 2018 in book-entry form only through the facilities of The
Depository Trust Company ("DTC") and its direct and indirect participants, including Euroclear Bank S.A./N.V. and Clearstream
Banking, société anonyme.
_____________________
Joint Book-Runners
Citigroup
HSBC
The date of this offering memorandum is November 28, 2018.

TABLE OF CONTENTS
Page
Page
Presentation of Economic, Financial and
Balance of Payments and Foreign
Statistical Information ............................. iv
Trade...............................................55
Forward-Looking Statements ....................v
Money Supply and Foreign Currency
Summary....................................................1
Position...........................................57
Risk Factors.............................................11
Public Finance .........................................60
Use of Proceeds .......................................19
Overview ........................................60
Bermuda ..................................................20
Public Finance Policy .....................61
Constitution, Government, Legal
Annual Budget................................62
System and International Cooperation
Government Revenue Sources and
........................................................20
Tax Policy.......................................63
Military...........................................26
Government Expenditures ..............67
Independence..................................27
Public Debt .....................................68
Infrastructure ..................................27
Description of the Notes ..........................74
Education........................................30
Book-Entry, Delivery and Form..............88
Social Welfare ................................31
Transfer Restrictions................................95
Litigation ........................................33
Enforceability of Civil Liabilities under
Economy..................................................34
U.S. Federal Securities Laws and Other
Matters.....................................................97
Economic Policy.............................34
Taxation...................................................98
GDP ................................................35
Plan of Distribution ...............................101
International Affiliations ................36
Official Statements ................................106
Bank Regulations............................38
Legal Matters.........................................106
Insurer Solvency.............................39
General Information ..............................107
Principal Sectors of the Economy...40
Employment, Union Representation
and Salaries.....................................53
_______________________________
The information contained in this offering memorandum has been provided by us and other sources
identified in this offering memorandum, which we believe to be reliable. No representation or warranty, express or
implied, is made by the initial purchasers as to the accuracy or completeness of the information contained in this
offering memorandum, and nothing contained in this offering memorandum is, or should be relied upon as, a
promise or representation by the initial purchasers, whether as to the past or the future.
The notes described in this offering memorandum have not been registered with, recommended by or
approved by the U.S. Securities and Exchange Commission (the "SEC"), or any other U.S. federal or state securities
commission or regulatory authority, nor has the SEC or any such state securities commission or authority passed
upon the accuracy or adequacy of this offering memorandum. Any representation to the contrary is a criminal
offense.
This offering memorandum has been received by the BSX. The BSX takes no responsibility for the
contents of this offering memorandum, makes no representations as to its accuracy or completeness and expressly
i

disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon any part of the contents of
this offering memorandum. The BSX is not prohibited from distributing this offering memorandum and will make it
available upon request. Neither the BSX or any other regulatory body in Bermuda has approved or disapproved of
the notes and, other than the BSX, no regulatory body in Bermuda has passed opinion upon the adequacy of this
offering memorandum. Any representation to the contrary is a criminal offense.
Each person receiving this offering memorandum is deemed to acknowledge that this offering
memorandum does not contain all the information that would be included in a prospectus if this offering were
registered under the Securities Act. In addition, certain information included in this offering memorandum may not
conform to the requirements for offerings under the Securities Act.
This offering memorandum may be used only for the purposes for which it has been published. You must
comply with all applicable laws and regulations in connection with the distribution of this offering memorandum
and the offer or sale of the notes. See "Transfer Restrictions." You are not to construe the contents of this offering
memorandum as investment, legal or tax advice. You should consult your own counsel, accountant and other
advisors as to legal, tax, business, financial and related aspects of a purchase of the notes. We are not, and the initial
purchasers are not, making any representation to you regarding the legality of an investment in the notes by you
under applicable laws.
In making an investment decision regarding the notes, you must rely on your own examination of the
Government and the terms of the offering, including, without limitation, the merits and risks involved. The offering
is being made on the basis of this offering memorandum. Any decision to purchase notes in the offering must be
based on the information contained in this offering memorandum.
This offering memorandum contains summaries, believed to be accurate, of some of the terms of specific
documents, but reference is made to the actual documents, copies of which will be made available upon request, as
indicated under "General Information." All summaries are qualified in their entirety by this reference.
The notes are subject to restrictions on transferability and resale and may not be transferred or resold except
as permitted under the Securities Act and applicable state securities laws pursuant to registration or exemption
therefrom. See "Transfer Restrictions." You should be aware that you may be required to bear the financial risks of
an investment in the notes for an indefinite period of time.
No person is authorized in connection with any offering made by this offering memorandum to give any
information or to make any representation not contained in this offering memorandum and, if given or made, any
other information or representation must not be relied upon as having been authorized by us or the initial purchasers.
The information contained in this offering memorandum is presented as of the date hereof and subject to change,
completion or amendment without notice. Neither the delivery of this offering memorandum at any time nor any
subsequent commitment to enter into any financing shall, under any circumstances, create any implication that there
has been no change in the information set forth in this offering memorandum or in our affairs since the date of this
offering memorandum.
This offering memorandum does not constitute an offer to sell or a solicitation of an offer to buy the notes
to any person in any jurisdiction where it is unlawful to make such an offer or solicitation. The distribution of this
offering memorandum and the offer and sale of the notes may be restricted by law in certain jurisdictions. Persons
into whose possession this offering memorandum or any of the notes come must inform themselves about, and
observe, any such restrictions. See "Plan of Distribution" and "Transfer Restrictions."
Application has been made to list the notes on the official list of the Luxembourg Stock Exchange and to
trading on the Euro MTF Market. Application has also been made to list the notes on the BSX. We will use our
reasonable efforts to facilitate the listing and maintenance of the listing of the notes on the official list of the
Luxembourg Stock Exchange for trading on the Euro MTF Market and on the BSX so long as any notes are
outstanding; provided that, if at any time we determine that maintenance of either listing becomes unduly onerous or
requires disclosure of information beyond what we would be required to make publicly available in Bermuda, we
may delist the notes from the official list of the Luxembourg Stock Exchange and the Euro MTF Market or the BSX,
as the case may be. If the notes are delisted from the official list of the Luxembourg Stock Exchange and the Euro
ii

MTF Market, we will use our reasonable efforts to list the notes on another internationally recognized securities
exchange.
This offering memorandum includes particulars given in compliance with the listing regulations of
the Luxembourg Stock Exchange for trading on the Euro MTF Market and the BSX for the purpose of
providing information with regard to the Government. The Government accepts full responsibility for the
accuracy of the information contained in this offering memorandum and confirms that, having made all
reasonable inquiries and to the best of the Government's knowledge and belief, there are no other facts the
omission of which would make any statement herein misleading.
_______________________________
iii

PRESENTATION OF ECONOMIC, FINANCIAL AND STATISTICAL INFORMATION
Economic and financial data and statistical information provided in this offering memorandum may be
subsequently revised in accordance with our ongoing review of such data and information, and we are not obligated
to distribute such revised data and information to any investor. In addition, some of the economic and financial data
and statistical information presented herein includes estimates and forecasts based on available data and,
accordingly, are subject to revision.
Unless otherwise indicated, estimates in this offering memorandum are estimates of Bermuda's Ministry of
Finance, Ministry of Tourism and Transport, Ministry of Public Works, Ministry of The Cabinet Office, Department
of Statistics, Department of Communications, the Bermuda Tourism Authority or the Bermuda Monetary Authority.
Unless otherwise indicated, references to years are to the relevant calendar years. References to fiscal years are to
Bermuda's fiscal year, which begins April 1 of each year and ends on March 31 of the following year (e.g.,
2017/2018 fiscal year refers to the fiscal year that began on April 1, 2017 and ended on March 31, 2018).
The Accountant General of the Ministry of Finance issues historical financial statements of the
Government's Consolidated Fund (the "Consolidated Fund") that are prepared in accordance with the Public Sector
Accounting Board and the Accounting Standards Board of the Chartered Professional Accountants of Canada
(which are promoted by the Chartered Professional Accountants of Bermuda by signed agreement and therefore
generally accepted in Bermuda, which we refer to herein as "Bermuda GAAP") and on an accrued accounting basis.
These financial statements are prepared on a different basis from the revenue/expenditure and debt information
included in this offering memorandum, which information has been prepared on a modified cash basis. The
financial statements as of and for the 2016/2017 fiscal year are available on the Government's website at
www.gov.bm. These financial statements and any other information on the Government's website are not part of, or
incorporated by reference in, this offering memorandum. Unless otherwise stated, the financial information
provided for the 2017/2018 fiscal year and any subsequent period, are preliminary estimates or projections,
respectively, based on the information currently available to the Government, which is subject to change.
The Office of the Auditor General audited the historical financial statements of the Government's
Consolidated Fund as at and for the 2016/2017 fiscal year, which is not included or incorporated by reference in this
offering memorandum. It was the independent opinion of the Auditor General that the annual accounts of the
Consolidated Fund are presented fairly, in all material respects, and in accordance with Bermuda GAAP. Under the
Audit Act 1990, section 6(1)(b), the Auditor General is able to include in her report any other comments she
considers appropriate. In the March 31, 2017 report, the Auditor General has, for the sixth consecutive year,
included an additional explanatory paragraph as an `other matter,' which discusses the increased level of net debt
and the need for the Government to take action to reduce the total amount of debt outstanding. This explanatory
paragraph does not alter the Auditor General's unqualified opinion regarding the annual accounts.
In this offering memorandum, references to "GDP" are to gross domestic product. References to "real
GDP" are to real gross domestic product at constant 2006 prices (which is GDP at 2006 prices less net indirect
taxes); and references to "nominal GDP" are to nominal gross domestic product (which is GDP at current prices less
net indirect taxes). References to "GDP per capita" are to nominal GDP divided by the mid-year average population
of the relevant calendar year. The latest annual period for which final GDP and certain other operating data are
available is the 2017 calendar year, and quarterly GDP data is available for the period ended March 31, 2018. GDP
and certain other operating data for periods ending after March 31, 2018 has not been finalized, and the GDP data
for such periods included in this offering memorandum reflect the Government's preliminary estimates based on the
information currently available to the Government, which is subject to change.
In this offering memorandum, references to "$" or "dollars" are to the U.S. dollar as well as the Bermuda
dollar, which is pegged to the U.S. dollar at an exchange rate of one U.S. dollar to one Bermuda dollar.
Totals in certain tables in this offering memorandum may differ from the sum of the individual items in
such
tables
due
to
rounding.
iv

FORWARD-LOOKING STATEMENTS
This offering memorandum contains certain forward-looking statements regarding the Government of
Bermuda (the "Government," "we," "us," or "our"). All statements relating to the Government, other than
statements of historical fact, included or referenced in this offering memorandum which address activities, events or
developments that the Government expects or anticipates will or may occur in the future are forward-looking
statements. The words "will," "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and
similar expressions are also intended to identify forward-looking statements. These statements are based on certain
assumptions and analyses the Government has made in light of its experience and perception of historical trends,
current conditions and expected future developments, as well as other factors believed to be appropriate in the
circumstances. However, actual results and developments may not conform to expectations and predictions due to
risks and uncertainties that could cause actual results to differ materially from expectations, including, among
others, the following:

political, economic and other conditions in Bermuda and globally;

our financial condition and budgeted revenues and expenditures, including, for example, our ability to
increase revenues and reduce expenditures;

legislative, regulatory or administrative initiatives affecting businesses, including insurance companies
and other financial service businesses in Bermuda;

changes in tax and other laws in the United States or Bermuda and other major financial centers that
may affect the attractiveness of financial services in Bermuda;

economic conditions in the United States, Canada, the United Kingdom and the European Union that
may have an impact on the demand for financial services or tourism in Bermuda;

the impact of the impending departure of the United Kingdom from the European Union on the
Bermuda economy, regulatory regime and legal system;

declines in demand for financial services or tourism in Bermuda, due to competition from other
countries or otherwise;

prevailing conditions in domestic, international and multilateral lending markets and domestic and
international capital markets that may affect our ability to finance budgetary requirements, to refinance
outstanding debt and other obligations or to finance new projects;

weather, climatic or geological occurrences, particularly hurricanes and tropical storms;

terrorism, particularly acts of terrorism outside of Bermuda that affect financial markets or tourism
within Bermuda;

changes in interest rates or exchange rates;

a reduction in our foreign currency reserves;

the financial condition and liquidity of banks and other financial institutions in Bermuda;

trade and tariff policies of Bermuda's trading partners;

declines in tax revenues;
v

revisions to economic, financial and statistical information; and

other factors identified in this offering memorandum.
All of the forward-looking statements related to the Government made in this offering memorandum are
qualified by cautionary statements. The Government assumes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.
vi

SUMMARY
The following summary is qualified in its entirety by, and should be read in conjunction with, the more
detailed information in this offering memorandum. In this offering memorandum, references to "we," "us," "our"
and "the Government" are to the Government of Bermuda, and references to "Bermuda" are to Bermuda, a
self-governing British Overseas Territory, in each case, unless otherwise indicated.
Bermuda
Bermuda is a self-governing British Overseas Territory comprising the Bermudas or Somers Islands, an
archipelago of some 150 islands in the Atlantic Ocean, approximately 570 nautical miles southeast of the state of
North Carolina. Bermuda covers an area of approximately 21 square miles with an estimated population of 63,973
as of July 2018. Bermuda is the most populous United Kingdom Overseas territory and has an affluent and educated
population. Real GDP in 2017 was $4.7 billion, with an estimated per capita nominal GDP of $98,125, one of the
highest in the world.
Historical Highlights

Political, economic and social stability. Bermuda has a demonstrated history of political, economic
and social stability. Bermuda has the third-oldest continuous parliament in the world with a
democratic government dating back to 1620. Originally functioning under the British government,
Bermuda has had its own constitution since 1968. Bermuda has a strong economy and proved its fiscal
responsibility after the global financial crisis in 2008 by cutting expenses, fostering economic growth
and working towards a balanced budget in response to changed economic circumstances.

Global leader in GDP per capita. Bermuda has one of the highest per capita nominal GDPs in the
world, serving as a preferred jurisdiction for financial services and international business while
offering luxury tourist infrastructure and world-class facilities. Bermuda's per capita nominal GDP
was approximately $98,125 for the 2017 calendar year, one of the highest in the world.

Commitment to foreign trade and foreign investment. Foreign direct investment is widely recognized
by the Government as one of the main drivers of economic activity. With low personal and corporate
taxes, a professional and skilled labor force, proximity to the United States and its markets, and
extensive air transportation and communication network, Bermuda is highly attractive for foreign
direct investment. Furthermore, as a British Overseas Territory, Bermuda's legal system is grounded
in the common law of the United Kingdom. Its legal, regulatory and accounting systems adhere to
high ethical and transparency standards. Bermuda effectively and impartially enforces laws to combat
corruption, money laundering and the financing of terrorism. The Government's policies facilitate the
free flow of financial resources in the product and factor market, and the U.S. Securities and Exchange
Commission has recognized the BSX as a "Designated Offshore Securities Exchange." Bermuda's
culture of investment has created a climate of responsible business conduct among producers.

Commitment to equality. In 1834, slavery was abolished in Bermuda and schools were integrated
during the 1960s. Following the 1993 election, the Government formed a new Ministry of Human
Affairs to address issues of discrimination, particularly those relating to race and gender. The Ministry
of Human Affairs subsequently evolved into the Human Rights Commission, a non-Ministry
department that provides research and policy recommendations to the Government to promote
evidence-based decision-making and to foster partnerships to protect rights of all Bermudians and
further promote equality. It also monitors Bermuda's compliance with relevant international
conventions on individual rights. The current Government is focused on reducing economic inequality,
in particular by providing more opportunities for Bermudians to work and promote entrepreneurship.

A balanced democracy. Mr. E. David Burt, a member of the Progressive Labour Party ("PLP"),
became Premier on July 19, 2017, following the PLP's victory in the General Election. Mr. Burt
replaced former Premier, Mr. Michael Dunkley, a member of the One Bermuda Alliance Party "OBA"
1

who served as Premier from May 19, 2014 until the appointment of Mr. E. David Burt. Of the 36 seats
in the House of Assembly, 25 are held by the PLP and 11 are held by the OBA. The elected Speaker
of the House (the "Speaker") is also a member of the PLP, but as Speaker is not permitted to take part
in House of Assembly discussions or to vote on matters, unless there is a tie. The leader of the official
opposition is Mr. Craig Cannonier (who previously served as Premier) of the OBA. In general, the
policies of the PLP are pro-democracy and are relatively similar to those of the OBA.
Bermuda Economy
Overview
The economy of Bermuda is based primarily on international business and the high-end segment of the
tourism sector. Bermuda is regarded as a leading international financial center because of the following factors:

a long-established and highly developed commercial and social infrastructure;

geographic proximity to the United States and Canada and ease of access to and from major European
cities and the United Kingdom;

recognized by the Organization for Economic Cooperation and Development ("OECD"), the
International Monetary Fund ("IMF") and other multilateral organizations as having internationally
acknowledged transparency standards;

transparent and consistent application of financial services policy towards the financial services sector;

close international relations in the financial sector, including bilateral relations with the G7 and G20
economies as well as other markets that are of significant economic importance to Bermuda;

well-established reputation as a domicile of choice for insurance and reinsurance;

the BSX is one of the world's largest offshore, fully electronic securities markets recognized by the
U.S. Securities and Exchange Commission as a "Designated Offshore Securities Market";

modern business infrastructure and facilities;

high standards of living;

well-educated population and world-class labor force;

absence of direct taxation and exchange controls for international business; and

stable regulatory framework.
The largest concentrations of international companies doing business in Bermuda are involved in the
insurance and financial services sectors. In 2017, international business and tourism sectors, both of which are
significant sources of foreign exchange receipts, represented approximately 26.1% and approximately 5.2%,
respectively, of Bermuda's real GDP of $4.7 billion. In 2017, the international business sector's contribution to
GDP increased by 0.7% compared to 2016, though its relative contribution to GDP compared to other sectors of the
economy decreased due to higher growth in other industries, such as tourism. The international business activity
and tourism sectors of the economy together accounted for approximately $1.5 billion (excluding financial services)
in foreign currency receipts in 2017.
Preliminary GDP results for the quarter ending March 31, 2018 indicated a 0.4% decrease in constant
prices, after adjusting for inflation, registering positive results during the quarter relative to the comparable period in
2

2017, mainly as a result of the $23.0 million decrease in gross capital formation. During the period, GDP at current
prices increased by 1.0%.
Real GDP increased by 2.5% in 2017 compared to 2016, representing an improvement compared to
Bermuda's five year average (2013-2017) contraction in real GDP of 0.1%. Nominal GDP was $6.3 billion
for 2017, representing an increase of 2.9%, or $176 million, compared to nominal GDP for 2016 of approximately
$6.1 billion. This reflected an increase of 3.4%, or $202 million from GDP of $5.9 billion in 2015. In 2017, growth
was driven largely by the tourism sector and the real estate and rental sector, which increased by 23.4%, or $46.6
million, and 2.8%, or $21.9 million, respectively, in each case as compared to 2016.
Bermuda's net surplus on trade in goods and services for the first quarter of 2018 was $343 million, as
compared to $341 million for the first quarter of 2017, an increase of 0.6%. The net surplus on trade in goods and
services increased 10.6% in 2017, compared to 2016.
The Bermuda Consumer Price Index ("CPI") increased by 1.9% in 2017, compared to 1.5% in 2016.
The Government expects the employment rate to improve by focusing on policy measures and investments
designed to create a more diversified economy, which are expected to generate stronger economic growth. A
stronger and more diversified economy is expected to increase employment by creating jobs and opportunities in
new and emerging economic sectors that will drive stronger economic growth in the future. This will be supported
by various other employment initiatives, including improved work permit processes and numerous hotel and airport
redevelopment projects discussed elsewhere in this offering memorandum. See "Bermuda."
Multi-Pronged Strategy for Strengthening the Economy
Since becoming the ruling party in 2017, the PLP has pursued a multi-pronged strategy to expand the
Bermuda economy by focusing on policies designed to create employment opportunities for Bermudians and
promote entrepreneurship. To achieve these goals, the Government has begun implementing initiatives to (i)
stimulate domestic and foreign expenditure in the economy through further economic liberalization, targeted
investment strategies and diversification of business development initiatives, (ii) continue supporting successful
industries, while adhering to fiscally responsible policies through a balanced, long-term growth agenda and (iii)
promote economic equality through social targeted investment strategies.
Stimulating Investment in the Economy through Further Liberalization, Targeted Investment Strategies and
Diversification of Business Development Initiatives

Focusing on Keeping Bermudian Investments in Bermuda and Increasing Foreign Direct Investment.
The Bermuda Monetary Authority (the "BMA") indicated that over the last 10 years, $3 billion earned
in Bermuda has been reinvested in foreign economies. In an effort to incentivize the retention of these
funds in Bermuda, the Government has recently focused on stimulating local investment while
adapting to the realities of a global and technology-driven economic landscape. The Bermuda Business
Development Agency (the "BDA") has carried out strategic overseas business development meetings
to increase the total number of international companies establishing operations or doing business from
Bermuda, while simultaneously implementing pro-active, targeted marketing and business
development strategies locally to stimulate job retention and growth in the international business and
professional services sectors. Additionally, the Government announced in the 2018/2019 Budget
Statement that they will welcome global law firms to Bermuda. The presence of international law firms
will generally benefit the economy and employment prospects of Bermudians as well as enhance the
national brand. Once curtailed by broadened risk mitigation strategies in the wake of the global
financial crisis, the banking sector presents another area of growth potential.

Establishment of a New Banking License Designed to Provide Financial Technology ("FinTech")
Companies Access to Traditional Banking and Growth Opportunities. The Ministry of Finance has
consulted with the BMA to coordinate policy measures and initiatives designed to expand the number
of banks operating in Bermuda servicing growth markets such as FinTech, in particular those
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