Revenue Bond

A revenue bond, in the context of the US municipal bond market, is a bond, typically long-dated, whose cash flows – interest and principal repayments – are paid out of the income-generating projects they finance. These include a wide range of projects: road, bridge and tunnel tolls, bus and rail income, hospital revenues, university fees, utility payments, airport landing fees, rents; even leasing fees where bond payments are generated from leasing fees paid by municipalities that have leased infrastructure funded by external parties.