This is the second such bond that the UK company has raised.

The world has “Masala bonds” (offshore Indian debt) and “dim sum bonds” (China) and now investor appetite is being stoked with the launch of a “Burrito Bond” to raise capital for a Mexican-style UK restaurant chain. 

Chilango is raising the second iteration of this type of bond – paying gross interest of 8 per cent per annum over four years – having taken the initial plunge in 2014, raising more than £2 million ($2.57 million) in that case. Closing date for the offer is 2 December. In the first day of its offer, more than £1 million was raised.

The Chilango Burrito Bonds are being sold as long-term investments and investors aren’t protected by the UK’s Financial Services Compensation Scheme, so there’s an element of risk involved. As such, this is the kind of investment that should, wealth managers would argue, be in a diverse portfolio. Other recent offerings that are similar to the Chilango one are the Wellesley Property Bond and Sanctuary Bond. The latter was a fund-raising move to raise finance to help homeless people in the UK.

To encourage take-up, investors get gifts and even referrals to top-class restaurants in the UK and abroad – a bit different from the usually staid world of bond market pricing in the City or Wall Street. 

For example, bondholders will receive a voucher for two free burritos and a £10 promotional code for a free burrito, delivered via Uber Eats; those investing £1,500 will receive a Chilango Gift Card loaded with five delicious meals, and those investing £2,500 a Gift Card loaded with 10 meals, and those investing between £5,000 and £10,000 will also qualify for the ‘Chilango Green Card’, entitling them to free guacamole on one meal per transaction during the lifetime of the bond. For people putting in £10,000 or more, they obtain the “Chilango Black Card”, entitling them to a free burrito every week for the lifetime of the bond.

The new bond involves new referral programme, including a “private flavour event” with the former Senior Development Chef of The Fat Duck, an all-expenses paid trip to Day of the Dead in Mexico, Spanish language instruction from top instructors as well as a variety of “thrill-seeking” activities such as skydiving, motor-racing, speed-boating, abseiling, bungee jumping, and ice climbing.

Chilango , founded in 2007 by Eric Partaker and Dan Houghton, now has 11 restaurants in London and Manchester. The firm logged £10.2 million in sales and £1.7 million in earnings before interest, taxation, depreciation and amortization in its last financial year. It forecasts restaurant EBITDA of £2.1 million and nearly £11 million in sales in the current financial year.

Chilango will open in Birmingham within a few months and plans to open further sites in London at an approximate cash outlay of £500,000 for each restaurant.