El Salvador Postpones Planned Bitcoin Bond: Report

The country’s finance minister said the launch could be postponed to as late as September, according to Reuters.

El Salvador has postponed its planned $1 billion bitcoin bond offering due to unfavorable market conditions, Finance Minister Alejandro Zelaya said on Tuesday on Salvadoran TV show “Frente a Frente.”

  • It had initially been scheduled to launch between March 15-20 but the Russia-Ukraine war and its impact on the price of bitcoin caused the government to change the date, according to Reuters.
  • “I think this is not the time. There are some moves on the planet,” Zelaya said, adding that he prefers the issuance to take place between March and April. “In May and June sometimes you can, but the market variables get different. After September, it is difficult to raise, unless you are previously funded, as in the case of bitcoin bond,” he added.
  • According to Zelaya, the bitcoin bond will have a “substantial oversubscription” that could reach $1.5 billion.
  • In November 2021, President Nayib Bukele announced plans to build a “Bitcoin City” funded by the sale of the bonds, which have an annual coupon of 6.5%. Half the funds will be used to accumulate bitcoin (BTC), with the rest earmarked for infrastructure and bitcoin mining powered by geothermal energy.
  • According to Zelaya, the bond will be issued not by the government but instead by the state-owned thermal energy company La Geo. It will have a sovereign guarantee provided by the Salvadoran state, he added.

UPDATE (March 22, 2022, 22:10 UTC): Added details and background in third and fourth bullet points.

UPDATE (March 23, 2022, 23:25 UTC): Added comments from Alejandro Zelaya.

Read this article on CoinDesk

Trading Signals

Get Free Daily Trading insight

Would love your thoughts, please comment.x

Follow US:

StocksJar Is A Comprehensive Investing Tool And Social Trading Network For Private Investors And Day Traders To Help Them To Gain An Advantage Before Trading.

this website uses cookies

We use cookies to ensure you get the best experience on our website. To learn more about cookies, including how to control cookies please read our cookies policy.