Issuance of “Volcano Token I”
The Bitcoin Fund Management Agency (AAB) will conduct a public offering under the name “Volcano Token I,” marking the first debt token authorized in the Republic of El Salvador. This issuance is estimated to generate gross revenue of $500 million. The token will have a maturity period of five years, earning interest at an annual rate of 9.750%, and will be backed by a liquidity account created by AAB. The net proceeds from this offering will be used to purchase sovereign debt issued by El Salvador and Bitcoin.
The key participants in this issuance are: the Bitcoin Fund Management Agency as the issuing entity, Bitfinex Securities, S.A. de C.V. as the Digital Asset Services Provider, and Actuarial Consulting Services as the Certifying Entity. This issuance was approved by the National Commission of Digital Assets on November 7, 2023.
Issuance of Digital National Bond (DNB)
The Bitcoin Asset Management Agency (AAB) will conduct a public offering named “Digital National Bond (DNB),” a collectible currency backed by gold with a price of $15,000.00 per unit. This issuance will generate gross revenue of $4,050,000.00 and will have a 10-year maturity period, with an annual interest payment of 8% to be made twelve months after the issuance placement.
The proceeds from the DNB placement will be used to purchase sovereign debt issued by the Republic of El Salvador and short-term, low-risk, highly liquid investments. This process will be carried out through a brokerage house, investing in securities issued by the Ministry of Finance and by autonomous institutions of the Executive Branch, in instruments whose terms and yields can be aligned with this issuance.
Issuance of $ESOY
Egrains S.A. de C.V. is innovating the agro-commodities investment landscape by offering a portfolio of tokens fully backed by agri-food products. In El Salvador, the company has launched a public offering named “$ESOY,” consisting of a token backed by a bushel of soybeans, which serves as collateral to maintain its value stability.
The key participants in this issuance are: Egrains S.A. de C.V. as the issuing entity, IB Maker X, S.A. de C.V. as the Digital Asset Services Provider, and TR Capital as the Certifying Entity. This issuance was approved by the National Commission of Digital Assets on December 20, 2023.
Issuance of HILSV
Inversiones Laguardia, S.A. de C.V. has conducted a public offering under the name “Token HILSV,” involving the issuance of a debt token backed by the future cash flows of the Hampton by Hilton Hotel. The total issuance amount is $6,250,000.00. Each token represents credit rights equivalent to $1,000 plus an annual interest of ten percent. This issuance has a 5-year term, at the end of which the tokens will be eliminated after the capital is repaid.
The main participants in this issuance are: Inversiones Laguardia S.A. de C.V. as the issuing entity, Ditobanx El Salvador, S.A. de C.V. and Bitfinex Securities El Salvador as the Digital Asset Services Providers, and TR Capital as the Certifying Entity. This issuance was approved by the National Commission of Digital Assets on April 3, 2024.
Private Issuances and Their Benefits
Private offerings represent an innovative and more exclusive form of investment. They are characterized by the direct sale of tokens to institutional or accredited investors who meet certain income or net worth criteria. This approach allows companies to raise funds more selectively, targeting qualified investors, and is subject to specific regulations that vary depending on the country where they are conducted.
This type of investment provides early access to investment opportunities, contributes to portfolio diversification, and offers transparency and security by operating in a smaller market.
