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Industrial Revenue Bonds (IRBs) Corporations can borrow money by issuing bonds on their own in the commercial marketplace, in which case they must offer investors the prevailing rate of interest.
Revenue Bonds. bonds issued by governments for specific projects and backed only by whatever revenues the projects generate - require a feasibility study. Sources of revenue - bonds. utilities, housing, airports, toll roads,c0llege dorms, student loans, hospitals, industrial and sports.
Industrial Development Bonds are issued by municipal authorities, with the revenue source being the lease payments made by a corporate lessee. Furthermore, the corporate lessee unconditionally guarantees the bonds - so they take on the credit rating of the corporate guarantor.
What Are Industrial Revenue Bonds?IRBs? Industrial revenue bonds (IRB) are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools. IRBs were formerly called Industrial Development Bonds (IDB).
Revenue bonds issued by a municipality and secured by a lease agreement with a corporation. The purpose for the offering is to build a facility for a private company.
Q: What is the credit requirement for IDBs? A: The borrower needs to secure a letter of credit in the amount of the bonds from a bank with a long-term credit rating of at least ?A3? from Moody's Investors Service, or an ?A-? from Standard & Poor or Fitch Ratings, Inc.
Industrial revenue bonds (IRB) are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools. IRBs were formerly called Industrial Development Bonds (IDB).
Which statement best describes an industrial revenue bond? An industrial revenue bond is issued by a municipality to finance an asset that is leased to a private firm.
Key Takeaways. Revenue bonds are a class of municipal bonds issued to fund public projects which then repay investors from the income created by that project. For instance, a toll road or utility can be financed with municipal bonds with creditors' interest and principal repaid from the tolls or fees collected.