Bitfinex Securities is issuing a symbolic debt offering to finance the construction of a new Hampton by Hilton hotel at El Salvador International Airport, according to an April 11 statement shared with Crypto.
The symbolic debt offering is the first of its kind in the Central American country and seeks to raise $6.25 million. The short-term debt has a 10% coupon over five years and the minimum investment is $1000.
According to the statement, the hotel complex will be a 4,484 square meter facility with 80 rooms, five commercial spaces and other amenities spread over five levels.
Details
Bitfinex Securities partnered with Inversiones Laguardia (HILSV), an entity based in El Salvador, to oversee the token debt.
Meanwhile, Ditobanx is responsible for tokenizing and structuring the transaction and ensuring it is issued on the Liquid blockchain, a Bitcoin layer-2 solution. The token will trade under the HILSV ticker with two trading pairs, including the fiat US dollar and Tether’s USDT stablecoin. Trading will take place exclusively on the Bitfinex Securities platform.
Paolo Ardoino, CTO of Bitfinex and CEO of Tether, said:
“The HILSV token marks the first tokenization of digital assets from El Salvador and represents an important step forward in the development of the emerging capital market and the introduction of an important new asset class to the market.”
It is striking that Hilton’s role in this arrangement is limited to that of a franchisor and does not involve any direct involvement.
‘Economic benefit’
The initiative is expected to create approximately 1,000 jobs during construction and up to 5,000 direct and indirect jobs during the operational phases. The capital increase will start on May 13, 2024 and is expected to last one month.
Meanwhile, several stakeholders in the deal believe that the deal offers an opportunity to further develop El Salvador’s economy.
Roberto Laguardia, the president of Inversiones Laguardia, explained:
“The recently implemented digital asset laws will give us access to capital markets that were previously unavailable to us. This access will allow us to develop crucial tourism-related infrastructure, unlocking growth potential in the tourism sector. This expansion will ultimately result in economic benefits for every Salvadoran citizen.”