Rhino, the rugby ball and equipment manufacturer, is to raise £2 million between now and September through the issuing of a bond to small investors that will pay 7.5 per cent interest.
The minimum investment is £2,000 and the interest will be paid twice a year before the bonds repaid in full in five years time. In addition there will be additional sweeteners such as a ball and discount tickets to Guinness Pro12 matches over the course of the investment.
In funding terms the amount of interest is less than that which would be paid to a commercial lender while the engagement of sport is appealing to those who have cash savings but are getting a currently very low rate of return.
It echoes recent bonds that raised £35 million and £40 million respectively for Wasps Rugby Club and the Jockey Club in the UK.
The funding will be used to expand the business which is part owned by former England Captain Martin Johnson and chaired by Andrew Moss the former CEO of Aviva. It has doubled revenue from under £1 million over the past nine years and this investment will enable other growth opportunities to be pursued.
Bonds of this nature are attractive in terms of the interest and the engagement though they do lack the absolute security of more traditional and lower yield investments.
Rhino is the official supplier to the Guinness Pro 12 and the British and Irish Lions.
Image Credit: Inpho.ie
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