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Burrito and Chocolate Bonds

The Wall Street Journal has an interesting article on Chilango's bond issuance (hat tip: Graeme Acheson). Chilango is a Mexican fast-food outlet in London, which is seeking to expand across London. To achieve this, they have issued a four-year bond with an 8% coupon. However, for those who invest £10,000 in the bonds, there is an additional coupon in the form of a free burrito every week during the lifetime of the bond. This seems to be a trend, with Hotel Chocolat paying its bond coupon with chocolate (see video below)! Issuing bonds helps small firms bypass banks and they are not a new innovation. Small firms financed themselves in this manner before 1913.

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