Chilango, which is positioning itself as Britain’s response to Chipotle, has issued a series of “burrito bonds.”
The notes pay an 8% interest rate semi-annually. More importantly, they also come with a free burrito every week for the duration of the note if you subscribe for £10,000 pounds ($16,800). The Wall Street Journal’s Josie Cox, who first wrote up the story, says this could save burrito hounds more than $US600 a year. The minimum investment is £500 ($841).
The firm says they have already raised nearly $US600,000 from 83 investors since the issue went public a week ago. They’re aiming for £1 million ($1.7 million), but could raise as much as £3 million if the deal is oversubscribed. They’re working through CrowdCube, a UK-based site that is looking to expand the use of “mini-bonds” that will allow investors to lend money to established brands.
Chilango was founded by two ex-Skype executives in 2007. They have now opened seven branches around London.
Here’s their 33-page prospectus: