Bitfinex Securities has announced plans for a tokenized debt offering to finance the construction of a new Hampton by Hilton hotel at El Salvador International Airport. According to a statement released on April 11 and shared with CryptoSlate, this offering, valued at $6.25 million, marks a pioneering move in Central America.
The tokenized debt offering, a novel financial instrument in the region, aims to raise funds for the development of the hotel complex. Investors will have the opportunity to participate in this initiative with a minimum investment of $1000. The debt, carrying a 10% coupon over a 5-year term, presents an attractive short-term investment opportunity.
Bitfinex Securities has joined forces with Inversiones Laguardia (HILSV), an established entity in El Salvador, to oversee the tokenized debt issuance. Meanwhile, Ditobanx will handle the tokenization and structuring of the transaction, ensuring compliance with regulatory requirements. The issuance will take place on the Liquid blockchain, a layer-2 solution built on Bitcoin.
Paolo Ardoino, Bitfinex CTO and Tether CEO, expressed optimism about the venture, highlighting its significance in the development of El Salvador’s capital market. Ardoino emphasized the introduction of a new asset class and its potential to stimulate economic growth.
The involvement of Hilton in the project is limited to that of a franchisor, underscoring the independent nature of the initiative. The token, denoted by the ticker symbol HILSV, will trade against the US Dollar and Tether’s USDT stablecoin exclusively on the Bitfinex Securities platform.
Economic Implications and Job Creation
The tokenized debt offering is not only a financial endeavor but also a catalyst for economic development in El Salvador. With approximately 1,000 jobs expected to be created during the construction phase and up to 5,000 direct and indirect jobs during operations, the initiative holds promise for the local economy.
Roberto Laguardia, President of Inversiones Laguardia, highlighted the significance of the recently enacted digital asset laws, which have paved the way for access to previously untapped capital markets. Laguardia emphasized the potential for growth in the tourism sector, citing the development of crucial infrastructure as a key driver. Ultimately, he believes that this expansion will lead to tangible economic benefits for the citizens of El Salvador.
The capital raise is set to commence on May 13, 2024, and is expected to span a month, offering investors an opportunity to participate in El Salvador’s burgeoning economy.