El Salvador’s finance minister believes the country is “ready” to issue its first bitcoin bond, but that the time is not yet right.
The official launch
The Central American country had earlier stated that the $1 billion bonds would be issued between March 15 and March 20. Alejandro Zelaya, the finance minister, stated today that the government is ready to issue the bond but is awaiting the perfect moment. He did not provide an updated debut date for the bond.
“I don’t think it’s the proper moment yet,” he said when the interviewer questioned if now was the correct time. “I think we have to wait a couple more days.” But he went on to say that this doesn’t have to mean exactly two or three days from now. Due to market conditions, Zelaya likes bond offerings to take place between March and April, and no later than September.
During a March 11 appearance on the same television program, Zelaya first hinted that time could be an issue, citing the crisis in Ukraine as an unknown element hurting the worldwide economy. According to reports, Several essential factors needed to launch the bonds were still pending.
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Not yet finished the legal framework
Prior to the bond sale, the government had not finished the legal framework required for technology provider Bitfinex Securities to seek a license, nor had it published a so-called Disclosures to potential investors are included in an “important information document.”
The $1 billion bonds are generating a lot of interest, according to Zelaya, who also mentioned that it could be oversubscribed. In mid-February, Bitfinex told The Block that it had calculated a $500 million valuation.
According to Zelaya, the country will issue the bonds through LaGeo, the country’s state-owned geothermal energy corporation. LaGeo is governed by another state entity, the Comisión Ejecutiva Hidroeléctrica del Ro Lempa, according to Zelaya (CEL). Both are considered state-controlled autonomous companies.
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Source: https://www.thecoinrepublic.com/2022/03/25/el-salvador-is-ready-to-issue-its-first-bitcoin-bond/