# RGP-20: Allocation of Bond Issuance Funds

**URL:** https://gov.ribbon.finance/t/rgp-20-allocation-of-bond-issuance-funds/602
**Category:** Proposals
**Created:** [June 16, 2022, 11:23am UTC](https://gov.ribbon.finance/t/rgp-20-allocation-of-bond-issuance-funds/602 "2022-06-16T11:23:50Z")
**Posts on this page:** 1
**Showing post:** 10

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### Author: ![chudnov](https://dub1.discourse-cdn.com/flex005/user_avatar/gov.ribbon.finance/chudnov/32/134_2.png) [@chudnov](https://gov.ribbon.finance/u/chudnov)
#### Post date: [June 23, 2022, 2:25am UTC](https://gov.ribbon.finance/t/rgp-20-allocation-of-bond-issuance-funds/602/10 "2022-06-23T02:25:43Z")

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@spyro

1. It is not 2.5%, it is 5.5%: Bond APR: [7%](https://twitter.com/porterfinance_/status/1534260070153715712), Porter Subsidy APR (in USDC): 3%.  
So we are borrowing at 4% APR and supplying to Maple at 9.5% APR.

2. We are actually only allocating $500K vs. $1.5M as stated in the updated section. Yes, if the loans are defaulted we can lose $500K.

3. We do have a clear intention of how to use it. We initially sought to raise $3M with the intention of bootstrapping the Fuse pool and lending on Maple. This was our [reasoning](https://gov.ribbon.finance/t/rgp-17-ribbon-bond-issuance/583/2) for issuing the bonds in the first place.

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