In a groundbreaking move, Bitfinex Securities has announced plans to offer tokenized debt bonds to its customers as part of capital raise to finance the construction of a new Hampton by Hilton hotel complex at El Salvador International Airport.
These debt bonds will be the first to be arranged and traded on the platform.
The issuance is expected to raise US$6.25 million and offers a 10% coupon over a 5-year term with a minimum stake of US$1,000. To sweeten the deal, investors will also be offered perks, such as complimentary hotel nights, based on the size of their investment. The capital raise is due to commence on May 13, 2024, and is expected to last one month.
The debt instrument, trading under the ticker HILSV, will be available for trading against US dollars and Tether tokens on the Liquid Network, a Bitcoin sidechain facilitated by Blockstream AMP.
Notably, the platform, which is the securities trading division of crypto exchange Bitfinex and a leader in the sector, recently obtained the first license under El Salvador’s new Digital Asset Securities Law.
Paolo Ardoino, CTO of Bitfinex Securities, highlighted the significance of the move, stating:
“The HILSV token marks the first digital asset tokenisation from El Salvador and represents an important step forward in developing its nascent capital market as well as introducing a major new asset class into the market. For the first time, investors who do not usually have the opportunity to invest in such assets have the opportunity to do so, while issuers in markets which have less access to capital, are able to tap into a new asset class to raise finance.”
The bonds will be issued by Inversiones Laguardia S.A. de C.V., a player in the Salvadoran market since 2017.
Roberto Laguardia, Inversiones Laguardia’s President, also expressed optimism about the project, highlighting how the new digital asset laws will open up previously inaccessible capital markets. In Laguardia’s words:
“The recently implemented digital asset laws will grant us access to capital markets that were previously unavailable to us. This access will allow us to develop crucial tourism-related infrastructure, thereby unlocking the potential for growth in the tourism sector. This expansion will ultimately result in economic benefits for every Salvadoran citizen.”
Bitfinex claims the project will create approximately 1,000 jobs during the construction phase and up to 5,000 direct and indirect jobs when the hotel is operational.
This project is positive for El Salvador’s ambitions to become a major blockchain and Bitcoin hub, a goal championed personally by the country’s president, Nayib Bukele. El Salvador has been at the forefront of adopting Bitcoin and finding real-world use cases for the technology. In 2021, the President announced plans to invest a part of the profits earned from the Bitcoin holdings in a veterinary clinic to be built in El Salvador.
President Bukele, who was recently re-elected for a second term, was largely responsible for El Salvador’s historic decision to adopt Bitcoin as legal tender in 2021 during his first term.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
