President Nayib Bukele of El Salvador announced that it has received US$1.6 billion in investment from Turkish holding company Yilport and will launch large-scale seaport infrastructure construction. Among them, La Unión port is also the location of "Bitcoin City", which vowed to develop in 2021. Is he finally going to be resurrected?
Economic Plan / Phase 3: Logistics pic.twitter.com/2cmn8T3g5p
— Nayib Bukele (@nayibbukele) August 12, 2024
Yilport invests 1.6 billion magnesium in port construction
El Salvador gets Turkish holding Yilport to invest $1.615 billion in two seaports in El Salvador, the largest private investment in the country's history.
The first phase of investment will begin by the end of this year and will strengthen the infrastructure of Acajutla, El Salvador’s largest port, located in the west of the country and mainly handles the import and export of goods such as oil, fertilizers, coffee and sugar.
It will then invest in the port of La Unión, which is located in eastern El Salvador and is also the location of "Bitcoin City".
Will “Bitcoin City” begin to develop?
According to previous reports, the “Bitcoin City” that El Salvador has vowed to build since 2021 is located in eastern El Salvador, between the two cities of La Unión and Conchagua. Contains an airport, residential and commercial areas. There will also be a giant Bitcoin symbol in the city center.
Nayib Bukele hopes to attract a large amount of foreign capital through this city and claims that it will not levy any income tax, capital gains tax, real estate tax, payroll tax and municipal tax, and will achieve zero carbon dioxide by relying entirely on volcanic geothermal power generation. emission. The only thing city residents will have to pay is a 10% value-added tax, half of which will be used to repay the Bitcoin Bond Fund; the other half goes to fund public services.
Tokenized bond issuance underperforms
However, the issuance status of the volcano bonds that were originally going to be used to raise funds does not seem to be ideal. Bitfinex launched a tokenized debt offering in April that it expected to raise $6.25 million to build and develop a complex at El Salvador’s international airport. According to reports, Bitfinex only raised $342,000 from investors on the first deadline, so it decided to refund investors. However, Bitfinex hopes that the issuer will re-establish new issuance conditions before restarting fundraising.
The investment by Turkish holding company Yilport was finalized during President Bukele's visit to Turkey in 2022.
This article El Salvador receives 1.6 billion magnesium investment from Yilport, will Bitcoin City be resurrected? First appeared in Chain News ABMedia.
