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 understanding industrial revenue bonds irbsmunicipal bonds aka munis are tax exempt debt obligations issued by a state city or county to raise money for major capital projects such as infrastructure or new schools investors expect a timely and periodic stream of interest income on these bonds and upon maturity repayment of their principal the source of funds used for interest payments and principal depends on whether the muni bond is a general obligation bond or a revenue bond one type of revenue bond is the private activity bond pab which is issued by the municipality on behalf of private organizations either for profit or non profit to finance particular projects although a private entity is doing the work the project is one that will benefit the community in some way a hospital airport or sports stadium an industrial revenue bond irb is a variety of pab one issued by the state or local government on behalf of a for profit company the municipality s aim is to improve the economic and employment conditions of its region and via the irb is willing to help fund a project and issue to tax breaks to the entity undertaking it 