Public Agency Revenue Bonds

Government agencies issue bonds to finance a variety of economic or public development projects for private and public entities. When investors purchase bonds, they essentially lend money to the borrower through the issuer. In return for the bond proceeds, the borrower promises to pay the investors/bondholders the principal amount plus a specified rate of interest over the life of the bonds based on the bonds debt service payment schedule. In this way, a bond is similar to a complex loan.

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$3.4 billion

Total green and social bonds issued by IBank

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59,327

Jobs that have been created through bond-financed projects in California

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$52.5 billion

Total bond activity

Municipal Bonds

Bonds issued by government agencies are called municipal bonds. The proceeds of the bonds are used to finance projects that benefit the community such as roads, schools, bridges, sewers, parks or water treatment. Most bonds issued by government agencies are tax-exempt. This means interest on these bonds are excluded from gross income for federal tax purposes. In addition, interest on the bonds is exempt from State of California personal income taxes.

Who is a conduit bond issuer?

As a conduit issuer, IBank does not underwrite the bonds in house. IBank issues bonds on behalf of a borrower and then lends those proceeds to that borrower. The bonds are special, limited obligations payable solely by the borrower’s payments. The borrower provides security to the bondholder and agrees to repay the bonds.

Public Agency Revenue Bonds (PARBs)

Bond financings for various State entities’ economic or public development projects and programs.

Examples of Public Agency Revenue Bonds

These include state entities or programs, such as the Clean Water State Revolving Fund or toll bridges. Schools can also qualify for a variety of improvements or construction.

Qualified Purposes

Expand unique programs of specific state and local government agencies used for the furtherance of governmental and qualified purposes including the construction of transportation/transit, water/waste water systems, power generation/transmission systems, sewer systems, schools as well as facilities and equipment used in providing related qualified services to such entities.

View our most recently issued IBank Bonds

IBank issues bonds for a variety of projects throughout the state including museums, educational facilities and performing arts centers, research institutes, manufacturing facilities and more. Some of the most iconic projects that have been financed with the help of IBank issued bonds include the Bay Area Toll Bridge, the Petersen Automotive Museum, the Academy Museum of Motion Pictures, the J. Paul Getty Museum, the B Street Theatre (Sophia) and more. Check out some of the projects that have used IBank issued bonds.

View our most recent issued IBank Bonds

Frequently Asked Questions and Fact Sheet

IBank Issued Bonds

Q: Must the facilities be open to the public?

A: Yes, projects financed through PARBs must be open to the public.

Q: Is there a specific application to be filled out by borrowers interested in PARBs?

A: No, there are no structured applications to apply for PARBS or public agencies’ economic development projects. Requests for both types of projects are continuously accepted. Please contact the IBank Bond Unit to discuss any project before applying. IBank representatives provide technical assistance and work with borrowers throughout the process.