El Salvador's Bitcoin Bond May Have Up To $1.5 Billion In Demand
El Salvador's soon to be issued $1 Billion Bitcoin Bond, may have up to $1.5 Billion in demand according to the Financial Times. Earlier in the month emerging market debt traders spoke with El Salvador's Finance Minister, Alejandro Zelaya, who stated this oversubscribed demand. Despite this, El Salvador's sovereign credit rating was downgraded from a B- to CCC, due to conflicts with the IMF and El Salvador's legal tender status with Bitcoin. However, if this bond is as oversubscribed as mentioned, it can create a roadmap for El Salvador and other similar emerging market to raise capital on favorable terms (the 6.5% Bitcoin Bond coupon is much less than the 17% coupon on El Salvador's Bond due in 2032 according to Reuters). This will also be done outside of the contentious history many of these emerging markets have with the IMF. Expect a successive $1 Billion Bitcoin Bond to follow if demand is high, followed by other emerging market nations to join.