High Octane Supercar Bond Pays 7.5 PC a Year
Well-heeled investors have been offered an annual income of 7.5pc from a “min-bond” issued by a supercar dealership.
Mini-bonds offer high rates of interest to savers who are prepared to lend directly to companies. However, the bonds are untradeable and lightly regulated, so the risks are high. Several mini-bonds have failed.
The supercar bond, issued by Prindiville, has a five-year term and will be backed by the firm’s stock of exotic vehicles, which it expects to include Ferraris, Lamborghinis and McLarens.
However, the minimum investment is high at £50, 000. Prindiville plans to raise £12m from the bonds.
By Richard Evans, The Sunday Telegraph