Utility Bond (Noun)
Meaning
A bond issued to finance the construction of public utility services.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The government issued a utility bond to cover the costs of constructing a new sewage system for the underdeveloped region.
- Local investors showed interest in buying the utility bond that would fund the development of green energy infrastructure in the city.
- In exchange for a lower interest rate, investors agreed to invest in the utility bond issued by the municipality for upgrades to the water treatment facilities.
- The utility bond was structured to mature over 20 years, providing stable long-term financing for the transmission line upgrades.
- The interest earned on the utility bond issue was tax-exempt, making it an attractive investment option for state residents investing in the expansion of rural electricity services.