Industrial Development Revenue Bonds

Posted in Finance, Accounting and Economics Terms, Total Reads: 417

Definition: Industrial Development Revenue Bonds

The type of bonds are issued by the municipal authority or a state agency on behalf of a private company which is not able to raise capital in its own either because the project is too risky and requires the backing of the municipal authority or the company does not have a good credit history. Such type of bonds are issued as the government wants to improve the economic conditions of the region by building factories and investing other infrastructure related projects.

Bonds issued for:

• Industrial uses including manufacturing and warehousing

• Research and development facilities

• Commercial enterprises

• Civic and cultural enterprises open to the public including theaters and museums

• Accredited educational institutions

• Health facilities

• Preservation of historic structures

Such bonds can be both publicly issued to the stock investors or privately placed with certain entities such as HNIs or financial institutions.



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