Industrial Revenue Bonds Definition

An industrial revenue bond also formerly known as an industrial development bond is a unique type of revenue bond organized by a state or local government. Industrial revenue bond definition is a revenue bond issued to provide industrial facilities for lease and dependent on the lease revenue for amortization and interest payments. Industrial revenue bonds irbs are a type of loan secured through letter of credit banks that provide below market interest rates for eligible uses such as purchasing land and equipment constructing buildings and upgrading existing facilities.