How the Structure Protects You
The Østbo bond uses a cross-border structure designed to give investors EU regulatory oversight, a clearly defined debt instrument, and real-asset backing through a registered first-priority mortgage over Norwegian real estate. Here is how each layer works — and what it means for you.
1. The Issuer — Østbo MD
Security tokens are issued by Østbo MD — an EU-domiciled entity regulated under European law and the supervision of the Bank of Lithuania (Lietuvos bankas). Lithuania is a full EU member state with an established framework for digital security instruments under MiCA and the Prospectus Regulation. Using an EU entity as issuer gives international investors access to European legal protections and clear dispute resolution
Your protection: You are investing with an EU-jurisdiction entity. European law governs the issuance, your rights as a bondholder, and any dispute resolution.
2. The Bond — Your Legal Instrument
Østbo MD issues bonds — legally defined debt instruments — directly linked to the security tokens on a 1:1 basis. Each bond is a formal financial obligation of the issuer: 10% annual interest (2.5% quarterly), with bullet repayment of 100% principal at maturity. When you purchase a token, a corresponding bond is simultaneously allocated and registered to you in the issuer's internal register, giving you a dual legal instrument: the on-chain security token and the off-chain bond.
Your protection: The bond is a contractual debt obligation — the issuer is legally required to pay your interest and return your principal. You are a creditor, not a shareholder. Your returns are defined and unconditional.
3. Token–Bond Linkage
The security token and its associated bond are permanently linked. The bond entitlement transfers automatically when the token is transferred on a secondary market — a new holder acquires both the token and the bond rights. Your investor record is maintained on two parallel registers: on-chain (the blockchain token record) and off-chain (the internal bond register maintained by Østbo MD). Both together constitute your complete legal proof of ownership and entitlement to all payments.
Your protection: You cannot lose your bond rights through token transfer. The linkage is contractually permanent and documented in both digital and legal form.
4. First-Priority Mortgage Security
Investor capital is secured by a registered first-priority mortgage over the Halden project land. Østbo MD — the regulated Lithuanian entity — acts as creditor to Østbo AS and holds the mortgage security on behalf of investors. Both tranches share equal priority (pari passu) and are secured by the same first-priority mortgage, registered in the Norwegian Land Registry (Kartverket). The security is registered before any investor funds are released to the project, and is further supported by Østbo AS's contracted pre-sale receivables from all 43 units already sold (representing the majority of the projected NOK 32.2M net profit).
Your protection: Your capital is backed by a registered first-priority mortgage over Norwegian real estate — established before funds are deployed and held on your behalf by a regulated creditor, not an unsecured promise.
5. Capital Flow & Use of Proceeds
Capital raised through the bond offering flows directly to Østbo AS to fund final-stage construction completion and value realisation of the Halden project — 43 residential units, 100% already pre-sold. This is development completion capital, not seed-stage funding. The contractual relationship between Østbo MD and Østbo AS allows all proceeds to be transferred without restriction. There are no intermediate fee layers, fund managers, or intermediary deductions between your investment and the project.
Your protection: 100% of net proceeds fund the Østbo project directly. The use of capital is defined, transparent, and contractually bound.
6. KYC, AML & Compliance
Full investor onboarding, identity verification, and AML screening is managed through the Tokenizer.Estate platform in compliance with EU Anti-Money Laundering Directive (AML5), Norwegian AML legislation, and applicable KYC requirements for Middle Eastern and European investors. All investor data is protected under GDPR. The platform maintains auditable transaction logs, encrypted storage, and role-based access controls — bank-grade infrastructure for a regulated investment instrument.
Your protection: Every investor is verified. Your transactions are secure, compliant, and auditable. You invest within a fully regulated framework.