Chilango launches Burrito Bond 2
The Mexican-inspired food chain aims to raise £3.25 million through crowdfunding.
Chilango has launched their second Burrito Bond, offering potential investors 8% interest per annum alongside various exclusive rewards based on the amount invested.
Investors in Burrito Bond 2 include the former CEO of Domino’s Pizza UK, VP of Marketing McDonald’s UK, and MD of Itsu.
“The Burrito Bond is a very straightforward idea - you loan money to Chilango and we agree to pay you interest semi-annually and redeem your initial investment (the 'principal') when the Bonds mature,” Chilango wrote on its crowdfunding platform.
“The 'Burrito Bonds' will be issued by Chilango Bonds Plc, a wholly owned subsidiary of Mucho Mas Ltd. (Chilango) which has provided a guarantee for the payment obligations of Chilango Bonds Plc for the Burrito Bonds. Funds will be used to open new restaurants at an approximate cash outlay of £500,000 per restaurant, as well as refinance existing debt.”
At the end of the initial four year term, investors will be given a choice to either continue to hold the Burrito Bonds for another year on exactly the same terms or to redeem the Burrito Bonds by giving the company six months' notice before the maturity date (or any subsequent anniversary).
When the Burrito Bonds are redeemed, the full initial investment will be repaid without any deductions or charges.
The first Burrito Bonds were launched in 2014, shoring up over £2 million for the company from 700 investors.
