Chilango Bond 2


Has anyone reviewed the Chilango Bond 2 currently out on their website offering 8% p.a.?

I've looked at the financials and to me, it seems 8% p.a. just doesn't cut it. Cashflows indicate its negative operating cashflow relying on future financings (equity + bond). It claims to have impressive investors backing it but the promotional video just raises more questions than answers.

https://bond.chilango.co.uk/?gclid=EAIaIQobChMIpv2YjuP53gIVLbHtCh1Rowy3EAAYASAAEgLkYfD_BwE

Comments

  • I would strongly suggest you forget about these type of bond offerings

    "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."

    It should noted that MUCHO MAS LTD has been losing significant amounts of money for the last 3 financial years
    Current "Net worth" of the business is probably currently in "Negative Territory"

    Only consider Orb listed bonds!
    Expect yield to be 4% or below for the safer securities, higher the yield, greater the risk
    Ensure you have a well diversified portfolio
  • Yeah. I can't lend my hard earned cash to an entity that is losing money. Speculative.
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