BTA1 Launch Report: Ohio’s First Credit-Backed Note

Executive Summary

On March 18, 2024, Orbita Note Series LLC successfully launched BTA1, Ohio’s first credit-backed note fully backed by Central Ura (URU). This landmark event signifies a transformative step in the state’s infrastructure financing, introducing an innovative, non-debt financial instrument that aligns with ethical investment principles. This report provides an in-depth analysis of the issuance process, collaboration with state authorities, and the significant impact on Ohio’s economic development. BTA1 serves as a pioneering model for credit-backed finance, offering investors a secure and ethical investment opportunity while supporting regional growth.

Introduction

Background and Purpose

The launch of BTA1 represents a critical advancement in financial innovation, addressing the need for sustainable and ethical financing solutions for infrastructure projects in Ohio. Traditional debt-based financing has often led to increased financial burdens on governments and taxpayers. BTA1, as a credit-backed note fully backed by Central Ura, offers an alternative that eliminates interest obligations and reduces financial risks. This report aims to provide stakeholders with comprehensive insights into the launch of BTA1, its implications for Ohio’s infrastructure financing, and its role in setting a new standard for ethical investments.

Issuance Process of BTA1

Planning and Development

The issuance of BTA1 involved meticulous planning and coordination among various stakeholders:

Needs Assessment: Identified critical infrastructure projects in Ohio requiring funding, such as transportation networks, energy facilities, and public utilities.
Feasibility Studies: Conducted economic and technical analyses to ensure the viability and sustainability of the proposed projects.
Stakeholder Engagement: Collaborated with state authorities, local governments, and community organizations to align objectives and gain support.

Provision of Central Ura

Asset Backing: The issuance required the provision of Central Ura equivalent to the maturity value of BTA1, ensuring full asset backing.
Depository Arrangements: Established secure depository agreements with financial institutions to hold the Central Ura backing the notes.

Regulatory Compliance

Legal Framework: Ensured compliance with federal and state securities laws, including registration requirements and disclosure obligations.
Regulatory Approvals: Obtained necessary approvals from the Ohio State Securities Commission and other regulatory bodies.

Marketing and Distribution

Investor Outreach: Developed a targeted marketing strategy to attract institutional and retail investors interested in ethical and sustainable investments.
Offering Memorandum: Prepared comprehensive offering documents detailing the terms, conditions, risks, and benefits of BTA1.
Subscription Process: Implemented a streamlined subscription process, utilizing both traditional channels and electronic platforms to facilitate investor participation.

Issuance and Settlement

Note Issuance: Officially issued BTA1 notes to investors on March 18, 2024, recording the transactions and updating the register of noteholders.
Settlement Procedures: Ensured the secure and efficient transfer of funds and delivery of notes through established clearing and settlement systems.

Collaboration with State Authorities

Partnership with the State of Ohio

Memorandum of Understanding (MOU): Entered into an MOU with the State of Ohio to outline the roles, responsibilities, and mutual commitments in the issuance of BTA1.
Government Support: Received endorsement from the Governor’s office and relevant state departments, highlighting the strategic importance of BTA1 for Ohio’s development.

Regulatory Engagement

Compliance Coordination: Worked closely with the Ohio Department of Commerce and the Division of Securities to ensure adherence to all regulatory requirements.
Transparency and Reporting: Agreed to provide regular reports to state authorities on the utilization of funds, project progress, and financial performance.

Public-Private Collaboration

Joint Committees: Established committees comprising representatives from Orbita Note Series LLC, state agencies, and community leaders to oversee project implementation.
Community Involvement: Engaged local communities through town hall meetings and public forums to gather input and foster support for the funded projects.

Impact on Ohio’s Infrastructure Financing

Innovative Financing Model

Non-Debt Instrument: BTA1 provides funding without increasing the state’s debt burden, as it is a credit-backed note rather than a traditional bond.
Cost Savings: Eliminates interest payments typically associated with debt financing, freeing up resources for project implementation and other public services.

Accelerated Project Implementation

Immediate Funding: The asset-backed nature of BTA1 ensures that funds are readily available, allowing for the prompt commencement of infrastructure projects.
Efficient Allocation: Funds are allocated directly to specific projects, reducing bureaucratic delays and enhancing accountability.

Economic Growth and Job Creation

Stimulating the Economy: Infrastructure projects financed by BTA1 are expected to boost economic activity, increase productivity, and attract additional investment to the state.
Employment Opportunities: Construction and operational phases of the projects will create jobs, contributing to lower unemployment rates and increased household incomes.

Long-Term Benefits

Improved Infrastructure: Upgraded transportation systems, energy facilities, and public utilities will enhance the quality of life for residents and support business operations.
Sustainable Development: Emphasis on green projects and sustainable practices aligns with environmental goals and positions Ohio as a leader in responsible development.

BTA1 as a Pioneering Model for Credit-Backed Finance

Demonstrating Viability

Proof of Concept: The successful launch of BTA1 validates the feasibility of credit-backed notes as a practical financing tool for public projects.
Investor Confidence: High subscription rates and positive investor feedback indicate strong market acceptance and trust in the asset-backed model.

Setting Precedents

Regulatory Framework: Establishes a template for regulatory compliance and collaboration that can be replicated in other jurisdictions.
Financial Innovation: Positions Ohio at the forefront of financial innovation, potentially attracting further financial services and institutions to the state.

Scalability and Replicability

Adaptable Model: The principles and processes used in BTA1 can be adapted to different projects, sectors, and regions, offering a versatile financing solution.
Encouraging Adoption: Success of BTA1 may encourage other states and entities to explore credit-backed finance, leading to broader systemic changes in public financing.

Investor Benefits and Ethical Investment Opportunity

Secure Investment

Asset-Backed Security: Investors have assurance that their investments are backed by tangible assets, reducing default risk.
Stable Returns: Expected returns are derived from the performance of essential infrastructure projects with long-term viability.

Ethical Alignment

Supporting Community Development: Investments directly contribute to projects that improve public services and community well-being.
Sustainable Practices: Emphasis on environmentally friendly projects aligns with investors’ ethical values and corporate social responsibility objectives.

Transparency and Accountability

Regular Reporting: Investors receive detailed reports on project progress, financial performance, and use of funds.
Governance Standards: Adherence to high governance standards ensures that investments are managed responsibly and ethically.

Market Opportunities

Portfolio Diversification: BTA1 offers an alternative asset class that can enhance portfolio diversification.
First-Mover Advantage: Early investors in this pioneering model may benefit from potential appreciation and future opportunities arising from market expansion.

Challenges and Mitigation Strategies

Regulatory Hurdles

Complex Compliance Requirements: Navigated extensive regulatory landscapes by engaging legal experts and maintaining open communication with authorities.
Mitigation: Established a dedicated compliance team to monitor and address regulatory changes proactively.

Market Acceptance

Investor Skepticism: Addressed initial skepticism by providing comprehensive educational materials and hosting investor briefings.
Mitigation: Demonstrated the security and benefits of BTA1 through transparent disclosures and showcasing successful case studies.

Operational Risks

Project Execution Risks: Recognized potential delays or cost overruns in infrastructure projects.
Mitigation: Implemented strict project management protocols, engaged reputable contractors, and established contingency plans.

Feedback from Stakeholders

Investor Testimonials

Positive Reception: Investors expressed appreciation for the opportunity to participate in a secure and ethical investment that also contributes to community development.
Trust in Innovation: Acknowledged the innovative approach as a refreshing alternative to traditional investment options.

Government Endorsements

State Officials: Praised the collaborative efforts and highlighted the alignment of BTA1 with Ohio’s strategic development goals.
Community Leaders: Recognized the potential for significant positive impacts on local economies and quality of life.

Industry Recognition

Financial Community: Industry experts have noted BTA1 as a groundbreaking development in asset-backed financing and ethical investment practices.
Media Coverage: Received favorable media attention, increasing public awareness and interest in credit-backed finance.

Future Outlook

Expansion Plans

Additional Issuances: Plans are underway to issue subsequent credit-backed notes (BTA2, BTA3) to finance more projects in Ohio and potentially other states.
Broader Adoption: Exploring opportunities to replicate the model in different sectors, such as education, healthcare, and renewable energy.

Enhancing Market Presence

Secondary Market Development: Initiatives to expand the secondary market for Orbita Notes to enhance liquidity and investor accessibility.
Technological Advancements: Investing in trading platforms and technologies to streamline transactions and improve user experience.

Ongoing Collaboration

Strengthening Partnerships: Continuing to build relationships with state authorities, financial institutions, and community organizations.
Investor Engagement: Maintaining open communication channels with investors to gather feedback and adapt strategies accordingly.

Conclusion

The launch of BTA1 on March 18, 2024, marks a significant achievement in advancing credit-backed finance and supporting regional development in Ohio. By providing an innovative, secure, and ethical investment opportunity, BTA1 not only addresses critical infrastructure needs but also sets a precedent for future financing models. The collaborative efforts between Orbita Note Series LLC, state authorities, investors, and communities have demonstrated the viability and benefits of this approach. As we move forward, the success of BTA1 lays a strong foundation for expanding credit-backed finance and fostering sustainable economic growth.

Appendices

Appendix A: Key Terms

BTA1: The first series of Orbita Notes issued in Ohio, fully backed by Central Ura.
Central Ura (URU): An asset-backed currency used within the Credit-to-Credit Monetary System.
Credit-to-Credit (C2C) Monetary System: A monetary framework where money is issued as credit backed by assets rather than as debt.

Appendix B: Project Portfolio

Transportation Projects: Details of road expansions, bridge repairs, and public transit enhancements funded by BTA1.
Energy Initiatives: Overview of renewable energy projects, including solar and wind installations.
Public Utilities: Information on water treatment facilities and waste management systems improved through BTA1 financing.

Appendix C: Contact Information

Orbita Note Series LLC
- Website: www.orbitanote.com
- Email: info@bta1.net
- Investor Relations: investorrelations@bta1.net
- Address: Orbita Note Series LLC, 7211 Charleton Ct. Canal Winchester, Ohio, 43110

Acknowledgments

We extend our gratitude to the State of Ohio, our investors, partners, and dedicated team members whose collective efforts have made the launch of BTA1 possible. Their commitment to innovation, collaboration, and ethical practices has been instrumental in achieving this milestone.

This report is intended for informational purposes and reflects the status as of March 31, 2024. Stakeholders are encouraged to contact us for the most current information and consult with financial professionals for personalized advice.