Obbligazione Bermudes 3.717% ( USG10367AD52 ) in USD

Bermudes

97.95 USD ▲

Bermuda

USG10367AD52 ( in USD )

3.717% per anno ( pagato 2 volte l'anno)

24/01/2027

Prospetto opuscolo dell'obbligazione Bermuda USG10367AD52 en USD 3.717%, scadenza 24/01/2027

G10367AD5

25/07/2025 ( In 87 giorni )

Le Bermuda sono un territorio britannico d'oltremare situato nell'Oceano Atlantico, note per le loro spiagge rosa, le acque cristalline e le storiche vestigia dell'epoca coloniale.

The Obbligazione issued by Bermudes ( Bermuda ) , in USD, with the ISIN code USG10367AD52, pays a coupon of 3.717% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 24/01/2027

OFFERING MEMORANDUM
U.S.$665,000,000
3.717% Senior Notes Due 2027
The Government of Bermuda is offering $665,000,000 aggregate principal amount of its 3.717% Senior Notes due 2027. The notes
will bear interest at a rate of 3.717% per year, accruing from October 19, 2016. Interest will be payable on January 25 and July 25 of each year,
commencing on July 25, 2017.
The notes will mature on January 25, 2027, unless earlier redeemed. The Government may redeem the notes, in whole or in part, at any
time by paying the greater of the outstanding principal amount of the notes and a "make-whole" amount calculated by the Government. In
addition, we may redeem the notes, in whole or in part, at any time on or after October 25, 2026 (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 this offering, 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.
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 9 of this offering memorandum.
_____________________
Offering Price: 99.986%, plus accrued interest, if any, from October 19, 2016.
_____________________
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 under Rule 144A of the
Securities Act and to persons outside the United States under 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.
The notes are expected to be delivered to the purchaser on or about October 19, 2016 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.
This offering memorandum constitutes a prospectus for purposes of Part IV of the Luxembourg law on prospectus securities dated
July 10, 2005, as amended.
_____________________
Sole Bookrunner
HSBC
The date of this offering memorandum is November 23, 2016.

TABLE OF CONTENTS
Presentation of Economic, Financial and
Employment, Union Representation &
Statistical Information .......................................iv
Salaries ......................................................45
Forward-Looking Statements ....................................v
Balance of Payments and Foreign Trade..........47
Summary....................................................................1
Money Supply and Foreign Currency
Risk Factors...............................................................9
Position......................................................49
Use of Proceeds .......................................................14
Public Finance .........................................................52
Bermuda ..................................................................15
Overview ..........................................................52
Constitution, Government and Legal
Public Finance Policy.......................................53
System and International
Annual Budget..................................................54
Cooperation...............................................15
Government Revenue Sources and Tax
Military.............................................................19
Policy.........................................................55
Independence....................................................20
Government Expenditures ................................58
Infrastructure ....................................................20
Public Debt.......................................................60
Education..........................................................23
Description of the Notes ..........................................67
Social Welfare ..................................................24
Book-Entry, Delivery and Form..............................80
Litigation ..........................................................25
Transfer Restrictions................................................87
Economy..................................................................27
Enforceability of Civil Liabilities under
Economic Policy...............................................27
U.S. Federal Securities Laws and Other
Matters..............................................................89
GDP..................................................................27
Taxation...................................................................90
International Affiliations ..................................30
Plan of Distribution .................................................93
Bank Regulations .............................................30
Official Statements ..................................................97
Insurer Solvency...............................................31
Legal Matters...........................................................97
Principal Sectors of the Economy ....................32
General Information ................................................98
_______________________
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 purchaser 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 purchaser, 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.
The notes and this offering memorandum have neither been registered with nor approved by any regulatory
authority in Bermuda.
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
i

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
purchaser is 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 purchaser.
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.
We are making this offering subject to the terms described in 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 such 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
MTF Market, we will use our reasonable efforts to list the notes on another internationally recognized securities
exchange.
ii

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 having made all reasonable inquiries, that 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, Transport and Municipalities, Department of Statistics 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., 2015/2016 fiscal year refers to the fiscal year that began on April 1, 2015 and ended on March 31, 2016).
The Accountant General of the Ministry of Finance of the Government issues historical financial
statements of the Government's 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) 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 fiscal year ended
March 31, 2015 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 2015/2016 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 Consolidated Fund of
the Government (the "Consolidated Fund") as at and for the fiscal year ended March 31, 2015, 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. This unqualified
opinion is consistent with the March 31, 2014 auditor's reports. 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,
2015 report, the Auditor General has, for the fifth consecutive year, included an explanatory paragraph as an `other
matter' that discusses ongoing incidents of non-compliance with the Government of Bermuda's Financial
Instructions. The Office of the Auditor General has explained that this is in relation to concerns about Information
Technology controls, the effectiveness of bank reconciliations, as well as other items. Capital Asset Recognition
ceased to be a contributor to other matters for the 2015 report. The Auditor General has also, for the fourth
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.
These explanatory paragraphs do not alter the Auditor General's unqualified opinion.
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 market
prices less net indirect taxes). References to "GDP per capita" are to nominal GDP divided by the mid-year average
population of the relevant year. The latest period for which GDP and certain other operating data are available is the
calendar year ended December 31, 2014. GDP data for periods ending after December 31, 2014 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 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 services 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 and the European Union that may result in lower demand for
financial services or tourism in Bermuda;

the impact of the impending departure of the United Kingdom from the European Union on our
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;

revisions to economic, financial and statistical information; and

other factors identified in this offering memorandum.
v

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 61,695
as of July 2016. Bermuda is the most populous United Kingdom Overseas territory and has an affluent and educated
population. Per capita nominal GDP in 2015 was $96,018, 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 has proven its fiscal
responsibility through its recent recovery from the global economic crisis that started in 2008.
Global leader in GDP per capita. Bermuda has one of the highest per capita incomes in the world,
serving as a preferred jurisdiction for financial services and international business while offering luxury
tourist facilities. Bermuda's per capita nominal GDP of $96,018 for fiscal year 2015 is the fifth highest
in the world and approximately 57% higher than per capita GDP in the United States.
Commitment to foreign trade and foreign investment. Foreign direct investment is widely recognized
by the Government of Bermuda 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 and money laundering. 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 Bermuda Stock Exchange (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 advice to the Government in order to promote evidenced-
based decision making and to foster partnerships to protect rights and advance equality. It also monitors
Bermuda's compliance with relevant international conventions.
A balanced democracy. Mr. Michael Dunkley, a member of the One Bermuda Alliance party ("OBA"),
became Premier on May 19, 2014, following the resignation of the former Premier, Craig Cannonier.
Of the 36 seats in the House of Assembly, 18 seats are held by the OBA and 17 voting seats are held by
the Progressive Labor Party ("PLP"). One former OBA member now sits in the House as an
Independent after resigning from the OBA party. 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 Marc Bean
1

of the PLP. In general, the policies of the PLP are pro-democracy and are relatively similar to those of
the OBA.
Bermuda's 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;

Proximity to the United States and ease of access to and from Europe and the United Kingdom;

Recognized by the OECD, the IMF and other international bodies 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
countries 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 and is recognized by
the U.S. Securities and Exchange Commission as a "Designated Offshore Securities Market";

Modern business facilities;

Excellent living conditions and reliable infrastructure;

Well-educated 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 2015, international companies and tourism, both of which are significant
sources of foreign exchange receipts, represented approximately 28.0% and approximately 4.2%, respectively, of
Bermuda's nominal GDP of $5.9 billion or real GDP of $4.6 billion. In 2015, Bermuda marked the fourth
consecutive year during which the international business sector's nominal contribution to GDP increased.
International business and tourism together accounted for $2.3 billion (excluding financial services) in foreign
currency receipts in 2015.
Bermuda's preliminary quarterly GDP results for the quarter ending March 31, 2016 demonstrate the
positive economic trends Bermuda has experienced in most sectors following a steady performance in 2015, as
described below. During the first fiscal quarter of 2016, nominal GDP was estimated at $1,643.7 million, a 0.6%
increase compared to the same period in 2015. The main drivers were a $29.2 million increase in household final
consumption and a $21.5 million increase in construction activity, partially offset by a $21.6 million increase in
payments related to imports of goods and services. Real GDP decreased by 0.6% in the first quarter of 2016 as
compared to the same period in 2015.
Nominal GDP increased 3.7%, 2.4%, 6.3% and 0.5% in each of the first, second, third and fourth quarters
of 2015, respectively, as compared to the same periods in 2014. Real GDP increased by 2.2%, 1.5%, 4.4% and
0.1% in each of the first, second, third and fourth quarters of 2015, respectively, as compared to the same periods in
2014. The main drivers of the quarterly increases in GDP were increased exports of goods and services and
increased household consumption.
Real GDP increased by 0.6% in 2015, representing an improvement compared to Bermuda's five year
average (2011-2015) decrease in real GDP of 2.0%. Nominal GDP was $5.93 billion for 2015, representing an
2

increase of 4.0%, or $227.6 million, compared to nominal GDP for 2014 of approximately $5.69 billion, reflecting
an increase of 0.5% or $29.9 million from GDP of $5.70 billion in 2013. In 2015, growth was driven largely by the
international business sector and retail trade sector, which increased 5.3% and 10.9%, respectively.
Bermuda's net surplus on trade in goods and services for the first quarter of 2016 was $311.2 million, as
compared to $340.8 million for the first quarter of 2015, a decrease of 8.7%. The net surplus on trade in goods and
services increased 13.4%, 12.1% and 45.2% in each of the first, second and third quarters of 2015, respectively,
compared to the corresponding periods in 2014, due to an increase in earnings from exports of services and
decreased payments for imports of goods. The net surplus decreased slightly by 0.8% in the fourth quarter of 2015
due mostly to higher payments for imports of services.
The unemployment rate in Bermuda was estimated at 7% as of March 31, 2015, compared to 9% as of
March 31, 2014. The Government expects Bermuda's employment rate to continue to improve with the upcoming
Louis Vuitton America's Cup World Series preliminary regattas, which culminate with the 35th America's Cup to be
held in Bermuda during the month of June 2017 (the "America's Cup"), legalization of casino gambling and various
other employment initiatives, including improved work permit policies and numerous hotel and airport
redevelopment projects discussed in detail elsewhere in this memorandum.
The Bermuda Consumer Price Index ("CPI") increased at an average annual rate of 1.5% in 2015, a 0.5%
decrease from the rate recorded in 2014. This is the lowest increase in the CPI in two years.
Two-Pronged Strategy For Strengthening the Economy
Since becoming the ruling party in 2012, the One Bermuda Alliance party ("OBA") has pursued a two-
pronged strategy to improve Bermuda's economy, consisting of (i) implementing measures to foster economic
growth, foreign investment and job creation and (ii) increasing the focus on fiscal discipline in an effort to reduce
the national debt.
Stimulating Economic Growth, Foreign Investment and Job Creation

Focus on increasing tourism and reaching new tourist demographics. In 2014, the Government
created the independent and privately run Bermuda Tourism Authority (the "BTA"), which replaced
the Department of Tourism as the organization responsible for promoting and increasing tourism in
Bermuda. Since its inception, the BTA has pursued several initiatives to grow the tourism industry in
Bermuda, including: (i) re-branding Bermuda's tourism website and advertising campaigns, (ii)
targeting groups such as business travelers and athletes to increase tourism during Bermuda's low
season and (iii) promoting vacation rental properties in order to appeal to a wider tourist demographic.
Since the creation of the BTA, Bermuda has experienced an increase in tourism, and expects further
increases with the launch of an "athletic season" and adoption of legislation to establish higher quality
and safety standards for vacation rental properties.

Attracting additional international business through legislation. Bermuda has long been an appealing
location for international businesses. Recent legislation has been adopted to make Bermuda more
attractive to entrepreneurs, developers and companies that want to establish residence in Bermuda.
The Government has eliminated work permit term limits and adopted the Limited Liability Company
Act 2016, which is based on the Delaware Limited Liability Company Act. The Government is also
drafting legislation, which is expected to be adopted in November 2016, to streamline the gaming
license application process for developers of new hotels in Bermuda.

Targeting new international markets and providing concierge services to businesses. The Bermuda
Business Development Authority ("BDA") has carried out strategic overseas business development
meetings in order to increase the number of international companies doing business in Bermuda. The
BDA's focus on Latin America in 2015 led to an increase in the number of businesses from that region
establishing residence or offices in Bermuda. For the 2016/2017 fiscal year, the BDA is exploring new
markets such as China and Southeast Asia, providing support to the America's Cup events and
promoting Bermuda's jurisdictional reputation overseas. In addition, the Ministry of Economic
Development's Business Development Unit, in collaboration with the Bermuda Business Development
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