2007-08-01 10:58:13 · 3 answers · asked by queen of slidell 1 in Business & Finance ➔ Personal Finance
It is like a project finance bond or municipal bond that is issued against revenues from a toll road or bridge tolls or other revenue-generating project. The revenue goes to pay off the interest and principal of the bonds.
2007-08-01 11:10:33 · answer #1 · answered by PK 5 · 0⤊ 0⤋
This is a fancy term used by government that wish to borrow money they expect to pay back from the income they claim will be generated by whatever they are spending the money on. The project will cost at least twice what the claim and generate less than half of the revenue. When the payment is due, whatever revenue was generated will have already been spent for something else.
2007-08-01 20:08:19 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Revenue backed debt is a security that is supported by the income generated from a particular source. As such, your ability to collect on such an investment is dependent upon the source.
Hope this helps!
2007-08-01 19:02:26 · answer #3 · answered by Mason J. K 1 · 0⤊ 0⤋