El Salvador has postponed its planned $1 billion U.S. Bitcoin (BTC) bond offering due to unfavorable market conditions.
The Government of El Salvador had initially been scheduled to launch its Bitcoin bond between March 15 and 20 but the Russia-Ukraine war and its impact on the price of Bitcoin has caused the government to change the date.
El Salvador is now looking to issue the bond in May or June of this year, according to comments from the country’s Finance Minister Alejandro Zelaya.
Last November, El Salvador’s President Nayib Bukele announced plans to build a “Bitcoin City” funded by the sale of bonds, which have an annual coupon of 6.5%.
Half the funds raised will be used to accumulate Bitcoin (BTC), with the rest earmarked for infrastructure and Bitcoin mining powered by geothermal energy.
According to Minister Zelaya, the bond will be issued not by the government but instead by the state-owned thermal energy company La Geo. It will have a sovereign guarantee provided by the Salvadoran government, he said.
