El Salvador Bitcoin bonds received “oral commitment” of $ 300 million

So far, investors have invested $ 300 million in El Salvador’s Bitcoin-backed bonds, according to Samson Mow, chief strategy officer of Blockstream, a Canadian blockchain company.

El Salvador plans to sell 10-year US dollar bonds worth $ 1 billion at an interest rate of 6.5%. Securities will only be issued in the first three months of 2022.

Blockstream will be the bookrunner during the approval process, which will be handled by the Bitfinex exchange.

In one tweet On December 7th, Mow, the leading creator of bitcoin bonds, said $ 300 million was just a “verbal pledge” at the time.

The final conditions sheet – a non-binding agreement that highlights the framework conditions for an investment – is not yet ready either, he added.

“Verbal Commitment”, however, means that the El Salvador Bitcoin bond or EBB1 – the token when it was launched, was “30% full” weeks before its official launch.

Of the $ 1 billion El Salvador plans to raise, $ 500 million will be used to build Bitcoin mining infrastructure and power, while the remaining $ 500 million will be used to buy more Bitcoin . , is stored in the country’s cold store.

El Salvador Congressman William Soriano said on December 4 that the Central American country plans to issue up to 10 Bitcoin bonds in the future. The proceeds will be used to build a Bitcoin city and pay to the International Monetary Fund (IMF).

EBB1 is structured to appeal to traditional institutional investors as well as the general public. Mow said the bonds would be sold in $ 100 tranches to “democratize access to bonds.”

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