El Salvador to Issue $1B in Tokenized Bonds on the Liquid Networkblog.blockstream.com/el-salvador-to-issue-1b-in-tokenized-bonds-on-the-liquid-network/
10 sats \ 6 comments \ @kr 21 Nov 2021 bitcoin
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2 sats \ 0 replies \ @jack 23 Nov 2021
See the term sheet here
Total NotionalUS$1,000,000,000
Coupon6.50%
Use of Funds$500M infra, $500 BTC purchase
Duration10 years
Maturation2032
Interest on notesPayable annually in january
BTC lockup5 years
BTC investment distribution50% of btc investment proceeds returned to investors once initial $500M btc investment is recovered
Bookrunner / trading venueBitfinex Securities
Issuance ProtocolLiquid Network
IssuerRepublic of El Salvador
Funding CurrenciesUSD, USDT, BTC
Minimum subscription amount$100
Nominal Value$100 (One unit of EBB1 is $100)
Citizenship by investment qualificationInvestments >= $100k will qualify investors for citizen-by-investment applications after a five year term
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2 sats \ 2 replies \ @jeff 21 Nov 2021
El Salvador is the weird guy in the office in 2013 that everybody laughed at.
He's figuring out how to do it.
He's stacking. He's a bit loud and just a tiny bit arrogant.
But also, just infectiously optimistic and sincerely seems to just want the best for everybody.
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1 sat \ 1 reply \ @kr OP 21 Nov 2021
Agreed, and this $500M of Bitcoin will give them some really meaningful BTC exposure.
Public debt in El Salvador is only $19 billion today. A 10x jump in the price of Bitcoin over the next 5 years could help pay off ~25% of the entire country's debt burden.
That would be a game changer for highly-indebted countries everywhere.
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1 sat \ 0 replies \ @jeff 21 Nov 2021
Wild to think that the interest rate of government debt could move (ie fall/rise), inversely proportional to the price of BTC (ie rising/falling). Because the state would actually become more financially solvent. All due to BTC.
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1 sat \ 0 replies \ @k00b 21 Nov 2021
This is huge news. El Salvador has moved so fast on Bitcoin it's incredible.
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0 sats \ 0 replies \ @bigjohn 21 Nov 2021
Good to see Liquid get its first customer after so long.
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