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El Salvador Delays Planned Bitcoin Bond

According to Reuters, The country’s finance minister said that the launch will be postpone  until late September.

Seeing that bitcoin as an adverse coin this time, Finance Minister Alejandro Zelaya explains on Tuesday on Salvadoran TV show “Frente a Frente.

He said that El Salvador has postponed the planned bitcoin bond.

Previously, it plans $1 billion bitcoin bond offering.

The plan is schedule to launch on March 15 to 20, formerly.

But Russia invasion towards Ukraine affect the bitcoin price.

Therefore, the government change the plan to launch the bitcoin bond.

Zelaya personally, prefers the issuance to take place between March and April.

But then he said “I think this is not the time. There are some moves on the planet,”

He also added “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,”

Zelaya mention that the bitcoin bond will have a “substantial oversubscription” that could reach $1.5 billion.

According to coindesk, 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 used to accumulate bitcoin (BTC), with the rest earmarked for infrastructure and bitcoin mining powered by geothermal energy.

According to Zelaya, the bond will issued by the state-owned thermal energy company La Geo.

It will have a sovereign guarantee provided by the Salvadoran state, he added.


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