Bitfinex Securities announced the launch of two new tokenized bond issuances under a rolling issuance program of Mikro Kapital’s securitization fund, ALTERNATIVE. This is the second tokenized bond since the companies announced a Memorandum of Understanding in October last year.
Mikro Kapital is a Luxembourg-based microfinance and impact investment company founded in 2008. The company focuses on providing microcredit and financial services to small and medium-sized enterprises (SMEs) in emerging markets, particularly in countries in Central Asia and Europe .
The bond program will consist of bonds with a maturity of 11 and 36 months with a coupon rate of 10% and 13.5% respectively. The bonds, issued on the Liquid Network, aim for a return of between 500,000 and 10,000,000 USDt with a minimum investment of 125,000 USDt.
These bonds are part of a monthly issuance program that may be expanded in the future with additional maturities and coupon rates.
Jesse Knutson, Head of Operations at Bitfinex Securities, highlighted the partnership’s role in merging traditional and crypto investments, with the aim of innovating financial solutions for the microfinance sector. According to Knutson,
“By leveraging the Liquid Network, we are introducing innovative financial solutions that bring together the strengths of traditional and crypto investments. We are excited to continue our ongoing partnership with Mikro Kapital and support them in introducing new forms of financing to the microfinance sector through this latest tokenized bond issuance.”
The Liquid Network is a Bitcoin layer-2 solution developed by Blockstream. It is designed to improve the functionality of the Bitcoin blockchain by enabling faster, more confidential transactions and the issuance of digital assets. It works as a sidechain for Bitcoin and maintains a 1:1 link to Bitcoin through a process known as peg-in and peg-out.
Liquid enables the issuance of assets, including the offering of regulated security tokens. This network allows issuers to enforce transfer restrictions and establish eligibility lists, ensuring regulatory compliance and allowing investors to self-cust, withdraw and trade securities on a peer-to-peer basis.
Proceeds from this issue will be invested in microfinance and sharing economy projects, supporting small businesses and entrepreneurs in emerging markets. ALTERNATIVE, Mikro Kapital’s securitization fund, currently supports 180,000 end borrowers in ten countries, with a loan portfolio of approximately €300 million. Notably, about 35% of beneficiaries are women entrepreneurs in local and rural communities.
Mikro Kapital’s debut tokenized bond, completed in October 2023, raised over $5.2 million USDt and was the first in the microcredit market. This latest offering builds on that success and further focuses on supporting small businesses and entrepreneurs in emerging markets.
The capital increase for these new bonds starts on July 3 and ends on July 31.