Following the success of the UK’s first ever Chocolate Bond, launched by Hotel Chocolat in 2010, the Company is aiming to raise a further £10 million in development funds through what it is calling “Chocolate Bond No. 2”. The Bond has been made available to Hotel Chocolat customers and private retail investors via its website.
In the two years since Hotel Chocolat’s original Bondholders have been free to redeem their bonds, over 93 per cent has chosen to rollover their investment and are still enjoying the returns. In response to this continued demand, “Chocolate Bonds No. 2” has been designed to extend participation to as many Hotel Chocolat customers as possible.
Two types of bond are available – the Hotel Chocolat Bond in which members can invest in multiples of £1,000 up to a maximum of £50,000 for a gross annual return of 7.25 per cent. With this bond the return is paid in the form of a Hotel Chocolat card that can be used to pay for products at the retailer’s shops, Cocoa Bar -Cafes and restaurants in the UK as well as online. The card can also be used at Hotel Chocolat’s Boucan restaurant and hotel in St Lucia. After three years the Bonds can be redeemed in full or re-invested annually. The second is the Tasting Club Bond in which members can invest either £2,500 or £5,000 for a gross annual return of 7.33 per cent. The return here is paid in the form of monthly chocolate box selections and after three years the Bonds can be redeemed in full or re-invested annually.
Development funds raised will be used to increase employment in Hotel Chocolat’s expanding chocolate manufacturing capabilities, grow its portfolio of Cocoa-Bar Cafes, chocolate boutiques and flagship sites with restaurants in the UK. Funds will also be used to fund international expansion and further invest in the development of the Rabot Estate, the Company’s cocoa plantation in St Lucia.
Angus Thirlwell, CEO and co-founder of Hotel Chocolat said “We were overwhelmed by the level of support we received from our Tasting Club members when we launched the first Chocolat Bond several years ago, raising £4.2 million of development capital. Since then we have been busy investing the funds in the areas we outlined at the time; namely growing our portfolio of Hotel Chocolat stores across the UK and overseas, boosting job creation, expanding the chocolate factory in Cambridgeshire and developing an eco-factory at our cocoa plantation.”
Hotel Chocolat traces its roots back to 1987 and its brand was established in 2004. Angus Thirlwell and co-founder Peter Harris were honoured with an ECMOD Lifetime Achievement Award in 2012.
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