Bond Financing Solutions
Unlock long-term, low-cost capital for your next real estate or infrastructure project.
At Globus Capital Advisors, we provide legal and financial guidance to structure and manage bond transactions — including tax-exempt and taxable bonds — for clients nationwide.
What Is Bond Financing?
Bond financing is a powerful funding method used for real estate development and infrastructure. It involves the issuance of bonds by municipalities, development authorities, or conduit issuers to raise capital.
How it works:
Investors buy these bonds in exchange for regular interest payments and repayment of their principal at maturity. For developers, this method provides access to large-scale funding at lower interest rates, especially when bonds are tax-exempt.
Bond financing requires expert structuring to avoid compliance pitfalls. Common issues include:
❌ Disclosure Violations – Providing incomplete or misleading offering details
⚠️ Tax-Exempt Status Issues – Risk of IRS noncompliance
🧑⚖️ Fiduciary Breaches – Failure to act in bondholders’ best interests
💵 Bondholder Disputes – Issues around payments or enforcement
🏗️ Construction Conflicts – Budget overruns, delays, or contractor disputes
We represent developers, issuers, and investors across the country.
What Bond Financing Support
Affordable Housing
Public Infrastructure
Mixed-Use Projects
Community Development
Our Bond Financing Services:
SEC-compliant disclosures
Tax-exempt status qualification review
Trustee and issuer fiduciary guidance
Drafting and analysis of bond documents
Conflict resolution and project monitoring
Investor rights protection
Regulatory Framework
Bond transactions are governed by a layered system of federal, state, and local regulations.
Federal Regulations
- IRC Section 103 – Allows tax exemption for qualified municipal bonds
- IRC Section 141 – Outlines usage restrictions for private activity bonds
- Securities and Exchange Commission (SEC) – Regulates disclosures and investor protections
State & Local Laws
Regulations vary by state and may involve:
Housing Finance Authorities (HFAs)
Community Development Districts (CDDs)
Industrial Development Authorities (IDAs)
Globus Capital Advisors helps you navigate these frameworks, ensuring every aspect of your bond financing is compliant and efficient.
Why Choose Globus Capital Advisors?
Legal + financial expertise under one roof
Experience with tax-exempt and taxable bonds
Focus on compliance, efficiency, and risk reduction
Tailored strategies for developers, issuers, and investors
Let’s Talk Bond Financing
Whether you’re planning a new development or seeking smart financing solutions, Globus Capital Advisors is your trusted partner in navigating the bond market.
Frequently Asked Questions
What are the benefits of bond financing?
Bond financing provides long-term, low-interest funding, often with tax advantages, enabling capital-intensive projects without immediate out-of-pocket costs.
Can private companies use bond financing?
Yes. Private developers can partner with public entities (e.g., CDDs or state agencies) that issue bonds on their behalf.
What is the role of an underwriter?
An underwriter structures the bond offering, assesses creditworthiness, markets the bonds, and ensures regulatory compliance. They are essential to a successful transaction.
How long does it take to complete a bond financing transaction?
The timeline varies depending on project complexity and regulatory approvals but typically ranges from 3 to 6 months. Early legal and financial planning can help avoid delays.
What types of projects qualify for tax-exempt bond financing?
Projects that serve a public purpose or offer affordable housing, infrastructure, or educational facilities may qualify for tax-exempt bond financing. Private activity bonds can also support industrial or nonprofit developments under certain rules.
What is a conduit issuer, and why is it important?
A conduit issuer is a government-related entity (such as a housing or development authority) that issues bonds on behalf of a private party. They’re crucial because private developers can’t issue tax-exempt bonds directly.
Are bond proceeds flexible in how they’re used?
Bond proceeds must be used according to the bond indenture and offering documents. Misuse of funds can lead to legal consequences and loss of tax-exempt status.
Can bond financing be combined with other funding sources?
Yes. Developers often blend bond proceeds with equity, grants, or tax credits (such as Low-Income Housing Tax Credits) to fully fund a project.
Is bond financing suitable for small or mid-size projects?
Yes, particularly when working with local authorities or using mini bond programs. Globus Capital Advisors can help evaluate whether your project is a good fit.
How do I get started with bond financing?
Start by consulting with experts like Globus Capital Advisors. We assess your project, determine eligibility, help you engage with a conduit issuer, and guide you through each step of the process.