The Burrito Bond Story Continues: Crowdfunded Security from Chilango Raises £3.3 Million

Chilango, a popular burrito chain operating in the United Kingdom, is reporting over £3.3 million has been invested in its “Burrito Bond 2” offering.

Chilango launched its mini-bond security offering on Crowdcube in 2014. It was the first mini-bond to list on Crowdcube. The security carried an 8% interest rate.

Mini-bonds are debt instruments that are similar to more traditional bonds except they cannot be traded. With less stringent rules, investors must hold them to maturity. Typically, they are unsecured thus carry a bit more risk for the investor.

This most recent mini-bond offering is a stand-alone affair as Chilango is listing the security without the assistance of a crowdfunding platform.

The Burrito Bond 2TM Offer, launched last October, has now raised £3.3 million of its £3.5 million target, with 12 days left in the offering. Chilango states that approximately 700 investors have participated in the funding round. Chilango says it expects to generate £2.1 million in restaurant EBITDA during the current financial year.

Chilango notes that it maintains “a perfect payment history.” Last year its restaurants generated more than £10 million in sales and £1.7 million in EBITDA on £11 million in top line revenue. Chilango says that all 11 restaurants are profitable.

This new mini-bond issuance holds a fixed interest rate of 8% with interest paid bi-annually. The term of security is for four years. As with the previous Burrito Bonds, certain perks are packaged with the security – contingent upon how much an investor commits.

“The UK is riding a Mexican wave right now.  The response to the Offer has been overwhelming and bears testament to the public’s enthusiasm for our mission – to inject a little flavour and vibrancy into the largely bland high-street dining landscape.  We look forward to welcoming more investors into the fold as the Offer moves towards its close and bringing Chilango’s stampede of flavours to more and more communities,” commented Chilango Co-CEO, Eric Partaker.

Chilango opened its first restaurant on in Islington, North London in 2007 and now has restaurants in London and Manchester along with more than 140 employees.