Private activity bonds (PABs) are a taxexempt financing option for projects performed by or with the private sector. These bonds subsidize projects by effectively lowering the interest paid on borrowed money. The strategy provides savings to the project, reduces project risk, and/or increases the competitiveness of project bonds.

Texas A&M Transportation Institute
3135 TAMU
College Station, TX 77843-3135
(979) 317-2000