El Salvadors Initial Online Bond Issue Struggles to Gain Momentum

The initial attempt at a digital debt offering in El Salvador has fallen short of expectations, failing to generate enough interest to move forward. Bitfinex Securities, the intermediary for the issuance aimed at constructing a Hilton hotel at El Salvador International Airport, only managed to raise $342,000 from investors, falling short of the $500,000 target before the initial deadline. Bitfinex Securities has indicated that they anticipate the issuer will need to restructure the offer.
The debut tokenized debt offering in El Salvador has hit a roadblock, with reports indicating that the anticipated interest from investors did not materialize as expected. Bitfinex Securities, the first company licensed to issue digital asset securities in the country, revealed that the fundraising fell short at $342,000, below the required $500,000 to proceed with the next phase.
The offering was intended to secure funds for the development of a Hilton-branded hotel at El Salvador International Airport, spearheaded by Inversiones Laguardia. The goal was to raise $6.25 million for an 80+ room hotel spanning 4,484 square meters. However, only a fraction of the target was reached.
In light of the underwhelming response, Bitfinex Securities has announced plans to refund the investments made by current participants and is hopeful that the issuer will revamp the offering to attract more potential investors. Inversiones Laguardia had sweetened the deal by offering complimentary hotel stays to investors based on their contribution size, starting from $1,000.
While Paolo Ardoino, CEO of Tether, commended the initiative as a significant advancement in El Salvador’s burgeoning capital market and the introduction of a new asset class, the lackluster performance raises questions about the demand for such digital financial instruments.
El Salvador has yet to launch the much-anticipated “volcano bonds” to finance the development of Bitcoin City, a futuristic metropolis powered by geothermal energy.
For the latest updates on cryptocurrency and economic developments in Latin America, subscribe to our Latam Insights newsletter.
What are your thoughts on the outcome of the inaugural tokenized debt offering in El Salvador? Share your views in the comments below.