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Bond Token Offering
REICI is disrupting the way “Private Equity” real estate funds can borrow money to leverage new acquisitions. With this Debt / Bond Security Token Offering (STO) , REICI can deliver a 5.5% coupon rate with a pay rate of 4.00% interest with a total yield of 6.4% providing income to global investors, paid quarterly in $U.S. Dollars (or their local currency of choice) and non-U.S. investors will be exempt from the 30% U.S. withholding tax requirements.Bond Token Offering
REICI is disrupting the way “Private Equity” real estate funds can borrow money to leverage new acquisitions. With this Debt / Bond Security Token Offering , REICI can deliver a 5.5% coupon rate with a pay rate of 4.00% interest with a total yield of 6.4% providing income to global investors, paid quarterly in $U.S. Dollars (or their local currency of choice) and non-U.S. investors will be exempt from the 30% U.S. withholding tax requirements.REICI Bond Token Offering (STO) Details
Fund Name: REI Capital Income LLC
Total Raise: $75,000,000
Soft Cap: $0
Raise Status: Estimate SEC certification – Fall 2022
Minimum Investment: $500 US
Security Type: Debt / with 5.5% coupon & 4.0% Pay Rate
Exemptions: Reg A+ Tier 2
Registration Country: USA
Accepted Currencies: USD, $USDC
Accepted Investors: Non-Accredited US and Global Eligible Investors
Minimum Required Holding Period: none
Token Name: REICI
Token Symbol: REICI-D
Token Price: $100.00 US
Blockchain Platform: Tezos
Protocol: FA2
Issuance Platform: Vertalo
Restrictions: KYC / AML
Escrow Custodian: TBD
The Benefits of Our Bond Token Offering (STO)
The REICI Bond Token (STO) will provide the Debt financing for portfolio acquisitions and adhere to the following underwriting requirements. Adherence to Underwriting standards is essential to establishing confidence with bond investors.
REICI will maintain an average Loan to Value Ratio (LTV) of 65%. Where the “value” is the acquisition price. An LTV ratio is calculated by dividing the amount borrowed by the lesser of the appraised value or purchase price of the property, expressed as a percentage. The balance of the capital required for acquisitions will be from Equity Investors. For commercial real estate the financial institutional standard is 75% or less.
REICI Bond Token will maintain an average Debt Service Coverage ratio (DSCR) of 1.75x. The DSCR is a measurement of the cash flow available to pay current debt obligations. The ratio states net operating income as a multiple of debt obligations due within one year, including interest and principal. For commercial real estate the financial institutional minimum standard is between 1.15x and 1.5x
REICI will obtain an appraisal from a nationally recognized appraisal firm (i.e. CBRE) prior to closing on any acquisition and will not pay a price above the appraised value.
No U.S. commercial real estate fund has ever offered an International Bond like this before.
Are You Still Wondering What Is A Bond Token?
As the world of cryptocurrencies and blockchain technology continues to evolve, we are bound to see different iterations of digital assets that take the form of their physical counterparts. A bond token is just one emerging example.
If you have an idea of what a security token is all about, it might be easier to understand how bond tokens work. In some circles, this can also be referred to as a debt token. Wherever you are in the spectrum of familiarity with security tokens, it might be important to understand what a bond token is.
What Is A Bond Token?
In the world of blockchain, a bond token is a programmable representation of a financial instrument with collateralized debt obligations. The financial instruments usually represented in this case are real estate mortgages and corporate bonds. Just like other security tokens, this is a way for people to get into the business of blockchain investments and digital lending either as entrepreneurs or investors.
Characteristics of Bond Security Token
Tradeable In A Crypto Exchange
– Owing to the inherent digital nature of bond tokens, it can be tradeable in regulated digital security exchanges. That also means you can have it stored in a digital wallet.
Income Opportunity
– Like the traditional bonds you know, bond tokens are usually structured in a interest-earning contract. Interestingly, the terms regulating the interest payments are contained in the digital representation of bond token ownership.
