Meaning & use
industrial revenue bond
Last updated
Meanings
nouncountablefinancebusinessAmerican
A bond sold by a local government to raise money for a private company's building or equipment.
Grammar: Countable: an industrial revenue bond, several industrial revenue bonds.
Patterns
- issue an industrial revenue bond
- buy industrial revenue bonds
- finance something with industrial revenue bonds
The city issued an industrial revenue bond to help build the new factory.
Investors bought the industrial revenue bonds because the interest was tax-free.
The plant was financed with a mix of loans and industrial revenue bonds.
nouncountablefinanceAmerican
A type of municipal bond whose interest is often free from federal tax for the buyer.
Grammar: Countable; often used in the plural when talking about a group of such bonds.
Patterns
- tax-exempt industrial revenue bonds
- the interest on an industrial revenue bond
Tax-exempt industrial revenue bonds attract buyers in high tax brackets.
The brochure explains how the interest on an industrial revenue bond is taxed.
Word forms
| plural | industrial revenue bonds |
|---|
Common combinations
- issue a bond
- The county agreed to issue a bond for the project.
- tax-exempt bond
- A tax-exempt bond can offer a lower interest rate.
- municipal bond
- Municipal bonds are sold by states and cities.
- raise capital
- The firm needed to raise capital for new machinery.
- bond proceeds
- The bond proceeds paid for the new warehouse.
Synonyms and how they differ
- IRB
- The common abbreviation in American financial writing; use the full phrase the first time you mention it.
- municipal bond
- A broader category that includes industrial revenue bonds as well as bonds for schools and roads.
- private activity bond
- A related American term for bonds where most of the benefit goes to a private user.
Word family
- bond noun
- A debt investment in which an investor lends money for interest.
- revenue noun
- Money that a business or government receives.
- industrial adjective
- Relating to industry or manufacturing.
Commonly confused: industrial revenue bond or corporate bond? industrial revenue bond or treasury bond?
industrial revenue bond vs corporate bond
A corporate bond is issued directly by a company; an industrial revenue bond is issued by a government on a company's behalf.
industrial revenue bond vs treasury bond
A treasury bond is sold by the national government, not by a local government for a private project.
Practice
What is an industrial revenue bond?
Choose one answer.
The key feature is that a local government issues the bond while a private company benefits from the money raised. A corporate bond is issued by the company itself, and a share is ownership, not debt.
Make it your own
Write a sentence using “industrial revenue bond”, then check it and compare it with the examples above.