Revenue Bond
Definition of Revenue Bond as it relates to Finance, Debt Financing
A Revenue Bond is a specific type of debt financing used primarily in public projects, such as infrastructure development. The bond's repayment is sourced from the revenue generated by the project it finances, hence the name "Revenue Bond". These bonds are typically issued by state or local governments or authorities and are backed by the future income streams of the associated projects, like tolls, fees, or charges. Investors in Revenue Bonds are attracted to the potential for steady, long-term returns, while issuers appreciate the ability to fund significant projects without raising taxes or otherwise burdening general citizens.
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External Links
- [RevenueBonds.com] VIP Invest
- [RevenueBond.com]