The basis for the implementation of any investment is to ensure its financing. The source of investment financing may be own funds (own financing, owner financing) or funds coming from outside the company (debt financing). A common form of debt financing of investments is the issue of bonds. The Act on Bonds provides for the possibility of issuing various types of bonds. An interesting category are the so-called revenue bonds.

Like any bond, a revenue bond is a security issued in a series in which the issuer states that it is indebted to the owner of the bond (the “bondholder”) and undertakes to provide a specific performance. Revenue bonds are further distinguished by two important features:

1) The owner of a revenue bond is entitled to satisfaction in priority to other creditors of the issuer:

a) from all or part of the proceeds of a project that was financed in whole or in part with the proceeds of the bond issue; or

b) all or part of the assets of a project financed wholly or partly with funds raised from the issue of bonds; or

c) from all or part of the proceeds of other projects as determined by the issuer.

2) The issuer of revenue bonds may limit its liability for obligations under the bonds to the amount of the revenues or the value of the assets of the project.

Unfortunately, this method of financing investments has a significant limitation – the issue of revenue bonds may be carried out only by entities operating in the public utility sector (especially of an infrastructural nature), such as local government units (communes, poviats, voivodships) and associations of these entities, BGK, PFR S.A., or companies controlled by the State Treasury or local government units. A closed catalogue of these entities is provided in Article 25 of the Act on Bonds.

Revenue bonds are an interesting instrument for financing investments. It would be worthwhile to make it possible in economic trade to use this instrument to the full extent, without the above-mentioned restrictions concerning entities and objects, obviously with appropriate balancing of benefits and risks resulting from it and securing the interests of creditors.