Brewdog taps investors for new mini-bond yielding 7.5%

By Daniel Lanyon on 2nd December 2016

Equity Crowdfunding

Almost a year after its last debt raise, Brewdog is looking to raise new cash on crowdcube with a higher yielding mini-bond.

Brewdog taps investors for new mini-bond yielding 7.5%

Scottish craft beer maker Brewdog has launched a new mini-bond on the crowdfunding site Crowdcube in a bid to raise between £500k and £10m, offering would-be investors a punchy 7.5 per cent yield per annum.

The firm, founded in 2007, is one of the most high profile to have turned to crowdfunding to raise cash instead of traditional sources of capital. Its ‘equity for punks’ slogan refers to four different stages of equity sales it has undergone to fund its explosive growth.

This is not the first time it has looked to the debt markets for cash though, last year it offered a similar mini-bond yielding 6.5 per cent. This new proposition, offering a higher rate of income, similarly comes with a four year term after which the principal will be repaid. Payments are biannual. Investors can gain exposure with as little as £500.

Brewdog says it has been profitable every year since 2008 and is on track to deliver EBITDA of £6m in 2016. The new cash, the firm says, will help it to grow revenues further in 2017 by an astonishing 80 per cent. The money will be used in investments in staff, infrastructure, equipment and working capital.

The window for investment is a further 45 days, after today. You can find more details here.

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Crowdcube