El Salvador is set to make regional history with its groundbreaking approach to financing the construction of a new hotel. In an unprecedented move, Inversiones Laguardia S.A. de C.V. has announced a tokenized debt issuance to raise $6.25 million, paving the way for the development of the Hampton by Hilton Hotel located at the El Salvador International Airport.
This private issuance, regulated by the National Commission of Digital Assets, marks a significant milestone, utilizing blockchain technology to facilitate a regulated financial operation in a digital, global marketplace. Investors will receive tokens on the Liquid Network sidechain of Bitcoin, representing their investment in the project, with the ability to trade these tokens on a secondary market in the future.
Scheduled for a five-year term with a 10% coupon rate payable semi-annually, investors can expect returns on their investment at the end of the period. The capital raise is slated to commence on May 13th, with a minimum investment of $1,000.
The token, identified by the symbol HILSV, will be tradable against US dollars and Tether’s USDT stablecoin on the Bitfinex Securities platform. Bitfinex Securities, the first entity licensed as a provider of digital asset services, will oversee the token’s distribution, with Ditobanx, a Salvadoran fintech company holding a digital assets license, leading the tokenization process alongside legal advisors from Torres Legal.
Paolo Ardoino, Chief Technology Officer of Bitfinex Securities, lauds the initiative for democratizing investment access, particularly for those who may not meet traditional investment thresholds. Ricardo Jiménez, Manager of Digital Securities at Ditobanx, highlights the global reach and accessibility of this new investment avenue, noting its potential to attract a diverse range of investors.
The project itself promises to deliver a modern hospitality experience, boasting 4,484 square meters across five levels, featuring 80 rooms, five commercial spaces, and an array of amenities including a pool, restaurants, gymnasium, gardens, and multipurpose halls.
In addition to financial incentives, the hotel operator sweetens the deal with complimentary hotel nights based on the size of the investment made.
To participate in the issuance driving the hotel’s construction, interested parties can register at https://www.bitfinex.com/securities/, gaining access to investment options listed on the platform.
El Salvador’s pioneering approach to financing underscores the growing role of blockchain technology in revolutionizing traditional financial practices, setting a precedent for future developments in the region and beyond.