Industrial Development Bond (IDB)

Definition

A type of municipal bond issued by a local or state government that uses funds raised to help finance private business projects. Though these projects are private, they may end up generating tax revenue for the government, for example through some public works types of projects. There are two types of IDBs, a development bond or revenue bond. Ratings on these types of bonds depend on the credit rating of the corporation backing them, and not that of the issuing government.
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industrial development industrial development revenue bonds (IDRBs)