Investors have so far committed $300 million towards El Salvador’s bitcoin-backed bonds, according to Samson Mow, chief strategy officer of Blockstream.
● El Salvador is planning to sell $1 billion in U.S. dollar-denominated 10-year bonds with a coupon of 6.5%. The securities will only be issued sometime in the first three months of 2022.
● Canadian blockchain firm Blockstream will act as the technology consultant and crypto exchange Bitfinex as bookmakers.
● In a tweet on Dec. 7, Mow, the main architect of the bitcoin bond, said the $300 million represented only “verbal commitments” at this stage.
● The final term sheet – a non-binding agreement highlighting the basic terms and conditions of an investment – was also not yet ready, he added.
● However, the “verbal commitments” mean that the El Salvador bitcoin bond, or EBB1, as its ticker will reflect at launch, is “already 30% filled” several weeks ahead of official launch.
● Of the $1 billion that El Salvador is targeting to raise, $500 million will be used to construct energy and bitcoin mining infrastructure and $500 million to buy even more bitcoin, to be kept in cold storage within the country.
● El Salvador congressman William Soriano told BeInCrypto on Dec. 4 that the Central American country is planning to issue up to 10 bitcoin bonds in future. Proceeds will be used to build the Bitcoin city and to pay-off the International Monetary Fund (IMF).
● EBB1 is structured in a way that targets both traditional institutional investors and ordinary people. Mow says the bond will be sold in $100 tranches to “democratize access to the bond”.
● “That’s the whole point, an instrument that empowers the people just as bitcoin empowers the people,” he added.
What do you think about this subject? Write to us and tell us!
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
