Edgar Filing: Dreyfus Municipal Bond Infrastructure Fund, Inc.

lp1-0805.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number			811-22784

	Dreyfus Municipal Bond Infrastructure Fund, Inc.
	(Exact name of Registrant as specified in charter)

	c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166
	(Address of principal executive offices) (Zip code)

	Bennett MacDougall, Esq. 200 Park Avenue New York, New York 10166
	(Name and address of agent for service)

Registrant's telephone number, including area code:				(212) 922-6000

Date of fiscal year end:		2/28
Date of reporting period:		08/31/2015

FORM N-CSR

Item 1. Reports to Stockholders.

Dreyfus Municipal Bond Infrastructure Fund, Inc.

SEMIANNUAL REPORT

August 31, 2015

Dreyfus Municipal Bond Infrastructure Fund, Inc.

Protecting Your Privacy
Our Pledge to You

THE FUND IS COMMITTED TO YOUR PRIVACY. On this page, you will find the Fund’s policies and practices for collecting, disclosing, and safeguarding “nonpublic personal information,” which may include financial or other customer information. These policies apply to individuals who purchase Fund shares for personal, family, or household purposes, or have done so in the past. This notification replaces all previous statements of the Fund’s consumer privacy policy, and may be amended at any time. We’ll keep you informed of changes as required by law.

YOUR ACCOUNT IS PROVIDED IN A SECURE ENVIRONMENT. The Fund maintains physical, electronic and procedural safeguards that comply with federal regulations to guard nonpublic personal information. The Fund’s agents and service providers have limited access to customer information based on their role in servicing your account.

THE FUND COLLECTS INFORMATION IN ORDER TO SERVICE AND ADMINISTER YOUR ACCOUNT. The Fund collects a variety of nonpublic personal information, which may include:

• Information we receive from you, such as your name, address, and social security number.

• Information about your transactions with us, such as the purchase or sale of Fund shares.

• Information we receive from agents and service providers, such as proxy voting information.

THE FUND DOES NOT SHARE NONPUBLIC PERSONAL INFORMATION WITH ANYONE, EXCEPT AS PERMITTED BY LAW.

Thank you for this opportunity to serve you.

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents

T H E F U N D


A Letter from the President	2
Discussion of Fund Performance	3
Statement of Investments	6
Statement of Assets and Liabilities	15
Statement of Operations	16
Statement of Cash Flows	17
Statement of Changes in Net Assets	18
Financial Highlights	19
Notes to Financial Statements	20
Proxy Results	28
Information About the Renewal of
the Fund’s Management Agreement	29
Officers and Directors	37

FOR MORE INFORMATION

Back Cover


	Dreyfus Municipal Bond Infrastructure Fund, Inc.		The Fund

A LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Municipal Bond Infrastructure Fund, covering the six-month period from March 1, 2015, through August 31, 2015. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Financial markets proved volatile over the reporting period. A recovering U.S. economy enabled stocks to advance during the spring and much of the summer, but those gains were more than erased in August when economic concerns in China, falling commodity prices and a stronger U.S. dollar sparked sharp corrections in equity markets throughout the world. The emerging markets were especially hard hit in this environment. U.S. bonds also generally faltered, as yields climbed and prices fell when a sustained domestic economic recovery resumed after a winter soft patch. Moreover, global economic instability in August hurt corporate-backed and inflation-linked bonds, but U.S. government securities held up relatively well.

We expect market uncertainty and volatility to persist over the near term as investors vacillate between hopes that current market turmoil represents a healthy correction and fears that further disappointments could trigger a full-blown bear market. Our investment strategists and portfolio managers are monitoring developments carefully, keeping a close watch on Chinese fiscal and monetary policy, liquidity factors affecting various asset classes, and other developments that could influence investor sentiment. Over the longer term, we remain confident that financial markets are likely to stabilize as the world adjusts to slower Chinese economic growth, abundant energy resources and the anticipated eventual normalization of monetary policy. In our view, investors will continue to be well served under these circumstances by a long-term perspective and a disciplined investment approach.

Thank you for your continued confidence and support.

Sincerely,

J. Charles Cardona
President
The Dreyfus Corporation
September 15, 2015

DISCUSSION OF FUND PERFORMANCE

For the period of March 1, 2015, through August 31, 2015, as provided by Daniel Rabasco and Jeffrey Burger, Portfolio Managers

Fund and Market Performance Overview

For the six-month period ended August 31, 2015, Dreyfus Municipal Bond Infrastructure Fund achieved a total return of 0.34% on a net-asset-value basis.¹ Over the same period, the fund provided aggregate income dividends of $0.3750 per share, which reflects a distribution rate of 6.46%.²

Generally flat results from infrastructure-related municipal bonds masked heightened market volatility over the reporting period. Strong security selections helped keep the fund’s total return in positive territory.

The Fund’s Investment Approach

The fund seeks to provide as high a level of current income exempt from regular federal income tax as is consistent with the preservation of capital. The fund’s portfolio is composed principally of investments that finance the development, support, or improvement of America’s infrastructure.

Under normal circumstances, the fund pursues its investment objective by investing at least 80% of its Managed Assets³ in municipal bonds issued to finance infrastructure sectors and projects in the United States. Also, under normal circumstances, the fund will invest at least 50% of its Managed Assets in municipal bonds that, at the time of investment, are rated investment grade, meaning that up to 50% of Managed Assets can be invested in below investment grade municipal bonds. Projects in which the fund may invest include (but are not limited to) those in the transportation, energy and utilities, social infrastructure, and water and environmental sectors. We focus on identifying undervalued sectors and securities, and minimize the use of interest rate forecasting. We select municipal bonds using fundamental credit analysis to estimate the relative value and attractiveness of various sectors and securities and to exploit pricing inefficiencies.

The fund employs leverage by issuing preferred stock and participating in tender option bond programs. The use of leverage can magnify gain and loss potential depending on market conditions.

Fluctuating Interest Rates Sparked Market Volatility

Despite bouts of macroeconomic uncertainty in overseas markets, the U.S. economy continued to grow over the reporting period, helping support underlying credit conditions for issuers of higher yielding municipal bonds. Credit conditions generally continued to improve, notwithstanding the well-publicized financial and pension obligation challenges faced by Puerto Rico, Illinois and New Jersey. Many states and local municipalities have seen tax revenues climb beyond pre-recession levels enabling them to balance their budgets, replenish reserves and reduce debt levels.

At the same time, municipal bonds throughout the credit-quality spectrum encountered volatile market conditions triggered by changing interest rates. After drifting higher amid stronger-than-expected employment data earlier in 2015, an economic soft patch during the

DISCUSSION OF FUND PERFORMANCE (continued)

winter soon caused yields to moderate. In fact, the U.S. economy grew at an anemic 0.6% annualized rate over the first quarter of the year due to severe winter weather and an appreciating U.S. dollar. Interest rates resumed their climb when economic growth reaccelerated in the spring, as evidenced by a 3.7% annualized growth rate for the second quarter. However, renewed concerns about sluggish global economic growth and particularly China’s weakening economy, pushed bond yields lower over the reporting period’s final weeks.

Municipal bonds were somewhat less volatile than other asset classes as investors were attracted to their favorable after-tax yields. After experiencing robust demand for a limited supply of newly issued bonds during 2014, issuance volumes climbed dramatically in 2015 as issuers rushed to refinance existing debt before expected increases in interest rates. Significant reinvestment by retail investors supported the municipal bond market and absorbed these higher levels of supply.

Fund Strategies Buoyed Relative Results

Although high yield municipal bonds generally lagged their investment grade counterparts during the reporting period, the fund’s security selection strategy enabled it to produce modestly higher returns than several broad municipal bond market averages. The fund achieved especially strong results from bonds backed by revenues from the states’ settlement of litigation with U.S. tobacco companies. In addition, the fund successfully avoided some of the weaker segments of the high yield market, most notably Puerto Rico bonds that were hurt by the U.S. territory’s deteriorating fiscal condition and unfunded pension liabilities.

On the other hand, the fund’s relative results were constrained to a degree by its holdings of Illinois bonds that lost value after a budget impasse and New Jersey appropriation bonds that suffered in a state experiencing a subpar economic recovery and tax revenue shortfalls. The fund’s relatively long average duration also proved mildly counterproductive during times of rising long-term interest rates. Finally, the fund’s leveraging strategy magnified the adverse impact of our duration management strategy.

A Constructive Investment Posture

The U.S. economic recovery has gained traction, but overseas economic instability has persisted, municipal bond issuance volumes have increased, and investors expect higher short-term interest rates later this year. Therefore, we expect market volatility to continue over the near term. Still, we remain optimistic about the market’s long-term prospects in the growing U.S. economy, and we have retained the fund’s generally constructive investment posture, including a relatively long average duration and a focus on infrastructure-related municipal bonds producing high levels of current income.

September 15, 2015

Bond funds are subject generally to interest rate, credit, liquidity, and market risks, to varying degrees. Generally, all other factors being equal, prices of investment grade bonds are inversely related to interest-rate changes, and rate increases can cause price declines.

High yield bonds are subject to increased credit and liquidity risk and are considered speculative in terms of the issuer’s perceived ability to pay interest on a timely basis and to repay principal upon maturity. Unlike investment grade bonds, prices of high yield bonds may fluctuate unpredictably and not necessarily inversely with changes in interest rates.

The use of leverage may magnify the fund’s gains or losses. For derivatives with a leveraging component, adverse changes in the value or level of the underlying asset can result in a loss that is much greater than the original investment in the derivative.

¹ Total return includes reinvestment of dividends and any capital gains paid, based upon net asset value per share. Past performance is no guarantee of future results. Income may be subject to state and local taxes, and some income may be subject to the federal alternative minimum tax for certain investors. Capital gains, if any, are fully taxable.

² Distribution rate per share is based upon dividends per share paid from net investment income during the period, divided by the market price per share at the end of the period, adjusted for any capital gain distributions.

³“Managed Assets” of the fund means the fund’s total assets, including any assets attributable to effective leverage, minus certain defined accrued liabilities.

STATEMENT OF INVESTMENTS

August 31, 2015 (Unaudited)

||ANAME||

Long-Term Municipal Investments - 143.4%

Coupon
Rate (%)

Maturity
Date

Principal
Amount ($)

Value ($)

Alabama - .7%

Jefferson County,

Sewer Revenue Warrants

0/7.90

10/1/50

2,500,000

1,665,100

Arizona - 6.0%

Phoenix Industrial Development Authority,

Education Facility Revenue (BASIS Schools, Inc. Projects)

5.00

7/1/45

2,000,000

1,987,580

Pima County Industrial Development Authority,

Education Revenue (American Charter Schools Foundation Project)

5.63

7/1/38

3,085,000

2,887,406

Pima County Industrial Development Authority,

Education Revenue (Arizona Charter Schools Refunding Project)

5.38

7/1/31

4,435,000

4,611,158

Salt Verde Financial Corporation,

Senior Gas Revenue

5.00

12/1/37

5,000,000

5,430,050

14,916,194

California - 11.0%

California Statewide Communities Development Authority,

Revenue (California Baptist University)

6.38

11/1/43

2,035,000

2,224,133

Golden State Tobacco Securitization Corporation,

Tobacco Settlement Asset-Backed Bonds

5.75

6/1/47

8,000,000

6,875,760

Long Beach Bond Finance Authority,

Natural Gas Purchase Revenue

5.50

11/15/37

5,000,000

5,900,250

Riverside County Transportation Commission,

Senior Lien Toll Revenue

5.75

6/1/44

3,250,000

3,678,773

San Buenaventura,

Revenue (Community Memorial Health System)

7.50

12/1/41

2,500,000

3,041,925

University of California Regents,

Medical Center Pooled Revenue

5.00

5/15/43

5,000,000

5,523,800

27,244,641

Colorado - 3.3%

City and County of Denver,

Airport System Subordinate Revenue

5.25

11/15/43

5,000,000

5,469,800

Colorado Health Facilities Authority,

Revenue (Sisters of Charity of Leavenworth Health System)

5.00

1/1/44

2,500,000

2,765,100

8,234,900

District of Columbia - .8%

District of Columbia,

Revenue (Knowledge is Power Program, District of Columbia Issue)

6.00

7/1/43

1,700,000

1,944,613

Long-Term Municipal Investments - 143.4% (continued)

Coupon
Rate (%)

Maturity
Date

Principal
Amount ($)

Value ($)

Florida - 2.2%

Davie,

Educational Facilities Revenue (Nova Southeastern University Project)

5.63

4/1/43

4,805,000

5,445,555

Illinois - 5.1%

Chicago,

Customer Facility Charge Senior Lien Revenue (Chicago O'Hare International Airport)

5.75

1/1/43

3,750,000

4,191,075

Chicago,

GO (Project and Refunding Series)

5.00

1/1/36

3,000,000

2,599,350

Metropolitan Pier and Exposition Authority,

Revenue (McCormick Place Expansion Project)

5.00

6/15/50

3,170,000

3,176,435

University of Illinois Board of Trustees,

Auxiliary Facilities System Revenue (University of Illinois)

5.00

4/1/44

2,500,000

2,710,275

12,677,135

Indiana - 6.9%

Indiana Finance Authority,

HR (The King's Daughters' Hospital and Health Services)

5.50

8/15/40

7,425,000

8,012,763

Indiana Finance Authority,

Private Activity Bonds (Ohio River Bridges East End Crossing Project)

5.00

7/1/40

5,000,000

5,249,050

Indiana Finance Authority,

Revenue (Baptist Homes of Indiana Senior Living)

6.00

11/15/41

3,500,000

3,906,210

17,168,023

Iowa - 3.1%

Iowa Finance Authority,

Midwestern Disaster Area Revenue (Iowa Fertilizer Company Project)

5.25

12/1/25

7,000,000

7,626,710

Kentucky - 1.1%

Louisville/Jefferson County Metro Government,

Health System Revenue (Norton Healthcare, Inc.)

5.75

10/1/42

2,370,000

2,686,324

Louisiana - 3.1%

Louisiana Public Facilities Authority,

Dock and Wharf Revenue (Impala Warehousing LLC Project)

6.50

7/1/36

2,000,000

2,243,080

New Orleans,

Sewerage Service Revenue

5.00

6/1/44

2,000,000

2,183,340

New Orleans,

Water Revenue

5.00

12/1/34

1,000,000

1,109,260

New Orleans,

Water Revenue

5.00

12/1/44

2,000,000

2,185,600

7,721,280

STATEMENT OF INVESTMENTS (Unaudited) (continued)


Long-Term Municipal Investments - 143.4% (continued)		Coupon Rate (%)		Maturity Date		Principal Amount ($)			Value ($)
Massachusetts - 4.2%
Massachusetts Development Finance Agency,
Revenue (North Hill Communities Issue)	6.50		11/15/43		2,000,000		^b	2,164,740
Massachusetts Port Authority,
Special Facilities Revenue (Delta Air Lines, Inc. Project) (Insured; AMBAC)	5.00		1/1/27		8,210,000			8,230,771
								10,395,511
Michigan - 10.0%
Detroit,
Water Supply System Senior Lien Revenue	5.25		7/1/41		2,250,000			2,385,315
Kent Hospital Finance Authority,
Revenue (Metropolitan Hospital Project)	6.25		7/1/40		5,750,000			5,762,247
Michigan Finance Authority,
HR (Trinity Health Credit Group)	5.00		12/1/39		5,000,000			5,523,800
Michigan Finance Authority,
Local Government Loan Program Revenue (Detroit Water and Sewerage Department, Sewage Disposal System Revenue Senior Lien Local Project Bonds) (Insured; Assured Guaranty Municipal Corp.)	5.00		7/1/30		1,500,000			1,684,170
Michigan Finance Authority,
Local Government Loan Program Revenue (Detroit Water and Sewerage Department, Water Supply System Revenue Senior Lien Local Project Bonds) (Insured; National Public Finance Guarantee Corp.)	5.00		7/1/36		2,250,000			2,415,938
Michigan Tobacco Settlement Finance Authority,
Tobacco Settlement Asset-Backed Bonds	6.00		6/1/34		5,000,000			4,379,350
Wayne County Airport Authority,
Airport Revenue (Detroit Metropolitan Wayne County Airport) (Insured; Build America Mutual Assurance Company)	5.00		12/1/39		2,250,000			2,520,270
								24,671,090
Minnesota - .9%
Saint Paul Housing and Redevelopment Authority,
Hospital Facility Revenue (HealthEast Care System Project)	5.00		11/15/25		2,000,000			2,144,860
Missouri - 2.4%
Missouri Health and Educational Facilities Authority,
Educational Facilities Revenue (Saint Louis College of Pharmacy)	5.50		5/1/43		2,000,000			2,175,640


Long-Term Municipal Investments - 143.4% (continued)		Coupon Rate (%)		Maturity Date		Principal Amount ($)			Value ($)
Missouri - 2.4% (continued)
Saint Louis County Industrial Development Authority,
Senior Living Facilities Revenue (Friendship Village Sunset Hills)	5.00		9/1/42		3,500,000			3,665,060
								5,840,700
New Jersey - 5.7%
New Jersey Economic Development Authority,
Private Activity Revenue (The Goethals Bridge Replacement Project)	5.38		1/1/43		2,500,000			2,686,575
New Jersey Economic Development Authority,
School Facilities Construction Revenue	5.25		6/15/40		2,000,000			2,038,180
New Jersey Economic Development Authority,
Special Facility Revenue (Continental Airlines, Inc. Project)	5.13		9/15/23		2,500,000			2,730,800
New Jersey Economic Development Authority,
Special Facility Revenue (Continental Airlines, Inc. Project)	5.25		9/15/29		4,500,000			4,901,085
Tobacco Settlement Financing Corporation of New Jersey,
Tobacco Settlement Asset-Backed Bonds	5.00		6/1/41		2,330,000			1,776,345
								14,132,985
New York - 15.5%
Deutsche Bank Spears/Lifers Trust (Series DBE-1177) Recourse,
(Metropolitan Transportation Authority, Transportation Revenue)	5.00		11/15/38		15,000,000		^b,c	16,614,150
New York City Industrial Development Agency,
PILOT Revenue (Queens Baseball Stadium Project) (Insured; AMBAC)	5.00		1/1/36		8,000,000			8,198,800
New York Liberty Development Corporation,
Revenue (3 World Trade Center Project)	5.00		11/15/44		3,500,000		^b	3,517,710
New York State Dormitory Authority,
Revenue (Saint John's University)	5.00		7/1/44		2,000,000			2,211,100
Niagara Area Development Corporation,
Solid Waste Disposal Facility Revenue (Covanta Energy Project)	5.25		11/1/42		7,870,000		^b	7,931,858
								38,473,618
Ohio - 6.7%
Buckeye Tobacco Settlement Financing Authority,
Tobacco Settlement Asset-Backed Bonds	6.25		6/1/37		7,000,000			6,046,810
Muskingum County,

STATEMENT OF INVESTMENTS (Unaudited) (continued)


Long-Term Municipal Investments - 143.4% (continued)		Coupon Rate (%)		Maturity Date		Principal Amount ($)			Value ($)
Ohio - 6.7% (continued)
Hospital Facilities Revenue (Genesis HealthCare System Obligated Group Project)	5.00		2/15/44		7,000,000			7,277,900
Southeastern Ohio Port Authority,
Hospital Facilities Improvement Revenue (Memorial Health System Obligated Group Project)	6.00		12/1/42		3,000,000			3,235,110
								16,559,820
Pennsylvania - 12.4%
Clairton Municipal Authority,
Sewer Revenue	5.00		12/1/37		4,000,000			4,272,720
Clairton Municipal Authority,
Sewer Revenue	5.00		12/1/42		1,500,000			1,590,600
Deutsche Bank Spears/Lifers Trust (Series DBE-1179) Recourse,
(Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Turnpike Subordinate Special Revenue)	5.00		12/1/42		13,000,000		^b,c	14,212,227
Montgomery County Industrial Development Authority,
Revenue (Whitemarsh Continuing Care Retirement Community Project)	5.25		1/1/40		1,500,000			1,482,630
Pennsylvania Higher Educational Facilities Authority,
Revenue (Thomas Jefferson University)	5.00		9/1/45		3,500,000			3,814,825
Pennsylvania Turnpike Commission,
Motor License Fund-Enhanced Turnpike Subordinate Special Revenue (Insured; Assured Guaranty Municipal Corp.)	5.00		12/1/42		5,000,000			5,426,300
								30,799,302
South Carolina - 2.9%
South Carolina Jobs-Economic Development Authority,
Health Facilities Revenue (The Lutheran Homes of South Carolina, Inc.)	5.13		5/1/48		1,750,000			1,792,315
South Carolina Public Service Authority,
Revenue Obligations (Santee Cooper)	5.13		12/1/43		5,000,000			5,492,000
								7,284,315
Texas - 18.1%
Austin Convention Enterprises Inc.,
Convention Center Hotel First Tier Revenue (Insured; XLCA)	5.00		1/1/34		5,000,000			5,056,900
Clifton Higher Education Finance Corporation,
Education Revenue (IDEA Public Schools)	6.00		8/15/43		1,500,000			1,777,425
Clifton Higher Education Finance Corporation,
Education Revenue (International Leadership of Texas)	5.75		8/15/45		2,500,000			2,505,550


Long-Term Municipal Investments - 143.4% (continued)		Coupon Rate (%)		Maturity Date		Principal Amount ($)			Value ($)
Texas - 18.1% (continued)
Clifton Higher Education Finance Corporation,
Revenue (Uplift Education)	4.25		12/1/34		2,000,000			1,911,120
Deutsche Bank Spears/Lifers Trust (Series DBE-1182) Recourse,
(Dallas and Fort Worth, Joint Improvement Revenue (Dallas/Fort Worth International Airport))	5.00		11/1/45		15,000,000		^b,c	15,828,600
JPMorgan Chase Putters/Drivers Trust (Series 4314) Non-recourse,
(Tarrant County Cultural Education Facilities Finance Corporation, HR (Baylor Health Care System Project))	5.00		11/15/20		7,410,000		^b,c	8,144,098
New Hope Cultural Education Facilities Finance Corporation,
Student Housing Revenue (National Campus and Community Development Corporation - College Station Properties LLC - Texas A&M University Project)	5.00		7/1/35		1,500,000			1,571,190
North Texas Education Finance Corporation,
Education Revenue (Uplift Education)	5.13		12/1/42		3,000,000			3,145,230
North Texas Tollway Authority,
Second Tier System Revenue	5.00		1/1/38		2,000,000			2,178,800
Texas Transportation Commission,
Central Texas Turnpike System First Tier Revenue	5.00		8/15/41		2,500,000			2,713,625
								44,832,538
Virginia - 7.6%
Lexington Industrial Development Authority,
Residential Care Facilities Mortgage Revenue (Kendal at Lexington)	5.50		1/1/37		5,400,000			5,486,940
Virginia Small Business Financing Authority,
Senior Lien Revenue (95 Express Lanes LLC Project)	5.00		1/1/40		7,640,000			7,986,780
Virginia Small Business Financing Authority,
Senior Lien Revenue (Elizabeth River Crossing Opco, LLC Project)	5.50		1/1/42		5,000,000			5,436,500
								18,910,220
Washington - 2.2%
Washington Health Care Facilities Authority,
Revenue (Providence Health and Services)	5.00		10/1/42		5,000,000			5,463,500
Wisconsin - 9.5%
Public Finance Agency of Wisconsin,
Senior Airport Facilities Revenue (Transportation Infrastructure Properties, LLC Obligated Group)	5.00		7/1/42		5,000,000			5,158,700
Public Finance Authority of Wisconsin,

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal Investments - 143.4% (continued)

Coupon
Rate (%)

Maturity
Date

Principal
Amount ($)

Value ($)

Wisconsin - 9.5% (continued)

Senior Living Revenue (Rose Villa Project)

4.50

11/15/20

1,500,000

1,504,665

Wisconsin Health and Educational Facilities Authority,

Revenue (Aurora Health Care, Inc.)

5.25

4/15/35

5,000,000

5,508,700

Wisconsin Health and Educational Facilities Authority,

Revenue (Beaver Dam Community Hospitals, Inc.)

5.25

8/15/34

5,700,000

6,059,499

Wisconsin Health and Educational Facilities Authority,

Revenue (Sauk-Prairie Memorial Hospital, Inc. Project)

5.38

2/1/48

5,000,000

5,180,550

23,412,114

U.S. Related - 2.0%

Guam Waterworks Authority,

Water and Wastewater System Revenue

5.50

7/1/43

3,000,000

3,394,650

Puerto Rico Commonwealth,

Public Improvement GO (Insured; Assured Guaranty Municipal Corp.)

5.00

7/1/35

1,750,000

1,628,043

5,022,693

Total Investments (cost $334,454,519)

143.4%

355,273,741

Liabilities, Less Cash and Receivables

(13.1%)

(32,537,010)

VMTPS, at liquidation value

(30.3%)

(75,000,000)

Net Assets Applicable to Common Shareholders

100.0%

247,736,731

VMTPS—Variable Rate Municipal Term Preferred Shares

^a Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity.

^b Securities exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2015, these securities amounted to $70,400,963, or 28.4% of net assets applicable to Common Shareholders.

^c Collateral for floating rate borrowings.


Portfolio Summary (Unaudited) ^†	Value (%)
Transportation Services	42.2
Health Care	22.2
Education	17.3
Industrial	13.1
Hospital	10.8
Utility-Water and Sewer	9.2
Tobacco	7.0
Retirement	5.9
Utility-Electric	4.4
Industrial	3.3
Pollution Control	3.2
Utility-Gas	2.4
City	1.0
Asset-Backed	.7
Special Tax	.7
	143.4

^† Based on net assets applicable to Common Shareholders.



Summary of Abbreviations

ABAG	Association of Bay Area Governments	ACA	American Capital Access
AGC	ACE Guaranty Corporation	AGIC	Asset Guaranty Insurance Company
AMBAC	American Municipal Bond Assurance Corporation	ARRN	Adjustable Rate Receipt Notes
BAN	Bond Anticipation Notes	BPA	Bond Purchase Agreement
CIFG	CDC Ixis Financial Guaranty	COP	Certificate of Participation
CP	Commercial Paper	DRIVERS	Derivative Inverse Tax-Exempt Receipts
EDR	Economic Development Revenue	EIR	Environmental Improvement Revenue
FGIC	Financial Guaranty Insurance Company	FHA	Federal Housing Administration
FHLB	Federal Home Loan Bank	FHLMC	Federal Home Loan Mortgage Corporation
FNMA	Federal National Mortgage Association	GAN	Grant Anticipation Notes
GIC	Guaranteed Investment Contract	GNMA	Government National Mortgage Association
GO	General Obligation	HR	Hospital Revenue
IDB	Industrial Development Board	IDC	Industrial Development Corporation
IDR	Industrial Development Revenue	LIFERS	Long Inverse Floating Exempt Receipts
LOC	Letter of Credit	LOR	Limited Obligation Revenue
LR	Lease Revenue	MERLOTS	Municipal Exempt Receipts Liquidity Option Tender
MFHR	Multi-Family Housing Revenue	MFMR	Multi-Family Mortgage Revenue
PCR	Pollution Control Revenue	PILOT	Payment in Lieu of Taxes
P-FLOATS	Puttable Floating Option Tax-Exempt Receipts	PUTTERS	Puttable Tax-Exempt Receipts
RAC	Revenue Anticipation Certificates	RAN	Revenue Anticipation Notes
RAW	Revenue Anticipation Warrants	RIB	Residual Interest Bonds
ROCS	Reset Options Certificates	RRR	Resources Recovery Revenue
SAAN	State Aid Anticipation Notes	SBPA	Standby Bond Purchase Agreement
SFHR	Single Family Housing Revenue	SFMR	Single Family Mortgage Revenue
SONYMA	State of New York Mortgage Agency	SPEARS	Short Puttable Exempt Adjustable Receipts
SWDR	Solid Waste Disposal Revenue	TAN	Tax Anticipation Notes
TAW	Tax Anticipation Warrants	TRAN	Tax and Revenue Anticipation Notes
XLCA	XL Capital Assurance

See notes to financial statements.

STATEMENT OF ASSETS AND LIABILITIES

August 31, 2015 (Unaudited)


	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments	334,454,519	355,273,741
Cash		1,303,833
Interest receivable		4,235,809
Deferred VMTPS offering cost—Note 1(f)		372,731
Prepaid expenses		10,536
		361,196,650
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 2(b)		219,899
Payable for floating rate notes issued—Note 3		36,805,000
Dividends payable to Common Shareholders		1,148,874
Interest and expense payable related to floating rate notes issued—Note 3		113,298
Interest expense payable on VMTPS—Note 1(f)		80,897
Accrued expenses		91,951
		38,459,919
VMTPS, $.001 par value per share (750 shares issued and outstanding at $100,000 per share liquidation value)—Note 1		75,000,000
Net Assets Applicable to Common Shareholders ($)		247,736,731
Composition of Net Assets ($):
Common Stock, par value, $.001 per share (18,381,981 shares issued and outstanding)		18,382
Paid-in capital		262,601,671
Accumulated undistributed investment income—net		915,698
Accumulated net realized gain (loss) on investments		(36,618,242)
Accumulated net unrealized appreciation (depreciation) on investments		20,819,222
Net Assets Applicable to Common Shareholders ($)		247,736,731
Shares Outstanding
(250 million shares authorized)		18,381,981
Net Asset Value Per Share of Common Stock ($)		13.48

See notes to financial statements.

STATEMENT OF OPERATIONS

Six Months Ended August 31, 2015 (Unaudited)




Investment Income ($):
Interest Income					8,675,728
Expenses:
Management fee—Note 2(a)					1,182,229
VMTPS interest expense and fees—Note 1(f)					491,527
Interest and expense related to floating rate notes issued—Note 3					186,304
Directors' fees and expenses—Note 2(c)					72,029
Amortization of VMTPS offering costs—Note 1(f)					58,558
Professional fees					57,070
Shareholders' reports					20,942
Custodian fees—Note 2(b)					12,649
Shareholder servicing costs					6,573
Redemption and paying agent fees—Note 2(b)					3,750
Miscellaneous					36,946
Total Expenses					2,128,577
Investment Income—Net					6,547,151
Realized and Unrealized Gain (Loss) on Investments—Note 3 ($):
Net realized gain (loss) on investments					996,270
Net unrealized appreciation (depreciation) on investments					(7,498,772)
Net Realized and Unrealized Gain (Loss) on Investments					(6,502,502)
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations					44,649

See notes to financial statements.

STATEMENT OF CASH FLOWS

Six Months Ended August 31, 2015 (Unaudited)




Cash Flows from Operating Activities ($):
Interest received	8,808,698
Operating expenses paid	(1,377,524)
Purchases of long-term portfolio securities	(20,861,705)
Proceeds from sales of long-term portfolio securities	19,971,335
Net Cash Provided by Operating Activities		6,540,804
Cash Flows from Financing Activities ($):
Dividends paid to Common Shareholders	(6,893,243)
VMTPS interest expense paid	(483,699)
Interest and expense related to floating rate notes issued paid	(172,348)
Net Cash Used in Financing Activities		(7,549,290)
Decrease in cash		(1,008,486)
Cash at beginning of period		2,312,319
Cash at end of period		1,303,833
Reconciliation of Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations to Net Cash Provided in Operating Activities ($):
Net Increase in Net Assets Applicable to Common Shareholders Resulting From Operations		44,649
Adjustments to reconcile net increase in net assets applicable to Common Shareholders resulting from operations to net cash provided in operating activities ($):
Increase in investments in securities, at cost		(378,780)
Decrease in payable for investment securities purchased		(1,507,860)
Increase in interest receivable		(56,713)
Decrease in accrued expenses		(4,194)
Increase in prepaid expenses		(5,580)
Increase in due to The Dreyfus Corporation and affiliates		24,438
Interest and expense related to floating rate notes issued		186,304
VMTPS interest expense and fees		491,527
Amortization of VMTPS offering costs		58,558
Net unrealized depreciation on investments		7,498,772
Net amortization of premiums on investments		189,683
Net Cash Provided In Operating Activities		6,540,804

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS



	Six Months Ended August 31, 2015 (Unaudited)	Year Ended February 28, 2015
Operations ($):
Investment income—net	6,547,151	13,363,063
Net realized gain (loss) on investments	996,270	(10,667,767)
Net unrealized appreciation (depreciation) on investments	(7,498,772)	37,357,549
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations	44,649	40,052,845
Dividends to Common Shareholders from ($):
Investment income—net	(6,893,243)	(13,786,485)
Total Increase (Decrease) in Net Assets Applicable to Common Shareholders	(6,848,594)	26,266,360
Net Assets Applicable to Common Shareholders ($):
Beginning of Period	254,585,325	228,318,965
End of Period	247,736,731	254,585,325
Undistributed investment income—net	915,698	1,261,790

See notes to financial statements.

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund’s financial statements and with respect to common stock, market price data for the fund's common shares.



		Six Months Ended
		August 31, 2015		Year Ended February 28,
		(Unaudited)		2015	2014	^a
Per Share Data ($):
Net asset value, beginning of period	13.85			12.42	14.33	^b
Investment Operations:
Investment income—net^c	.36			.73	.60
Net realized and unrealized gain (loss) on investments	(.35)			1.45	(1.98)
Total from Investment Operations	.01			2.18	(1.38)
Distributions to Common Shareholders:
Dividends from investment income—net	(.38)			(.75)	(.50)
Offering costs charged to paid-in capital	-			-	(.03)
Net asset value, end of period	13.48			13.85	12.42
Market value, end of period	11.61			12.80	11.29
Total Return (%)^d	(6.43)		^e	20.69	(21.13)	^e
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.69		^f	1.67	1.65	^f
Ratio of net expenses to average net assets	1.69		^f	1.67	1.65	^f
Ratio of interest and expense related to floating rate notes issued and VMTPS interest expense and fees to average net assets	.54		^f	.54	.52	^f
Ratio of net investment income to average net assets	5.21		^f	5.45	5.83	^f
Portfolio Turnover Rate	6.03		^e	12.81	70.72	^e
Asset coverage of VMTPS, end of period	430			439	404
Net Assets, Applicable to Common Shareholders, end of period ($ x 1,000)	247,737			254,585	228,319
VMTPS outstanding, end of period ($ x 1,000)	75,000			75,000	75,000
Floating Rate Notes outstanding ($ x 1,000)	36,805			36,805	36,805

^aFrom April 26, 2013 (commencement of operations) to February 28, 2014.

^b Reflects a deduction of $.675 per share sales load from the initial offering price of $15.00 per share.

^c Based on average common shares outstanding.

^dCalculated based on market value.

^eNot annualized.

f Annualized.

See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus Municipal Bond Infrastructure Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified closed-end management investment company. The fund’s investment objective is to seek to provide as high a level of current income exempt from regular federal income tax as is consistent with the preservation of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. Standish Mellon Asset Management Company LLC (“Standish”), a wholly-owned subsidiary of BNY Mellon and an affiliate of Dreyfus, serves as the fund’s sub-investment adviser. The fund’s Common Stock trades on the New York Stock Exchange (the “NYSE”) under the ticker symbol DMB.

The fund has outstanding 750 shares of VMTPS, with a liquidation preference of $100,000 per share (plus an amount equal to accumulated but unpaid dividends upon liquidation) and a stated mandatory redemption date of July 29, 2018,which are not registered under the Act. The fund is subject to a Redemption and Paying Agent Agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, with respect to the VMTPS.

The fund is subject to certain restrictions relating to the VMTPS. Failure to comply with these restrictions could preclude the fund from declaring any distributions to shareholders of Common Stock (“Common Shareholders”) or repurchasing common shares and/or could trigger the mandatory redemption of VMTPS at liquidation value. Thus, redemptions of VMTPS may be deemed to be outside of the control of the fund. In addition, the VMTPS have a mandatory redemption date of July 29, 2018. The fund will have the right to request that the holders of 100% of the aggregate outstanding amount of the VMTPS, in their sole and absolute discretion, extend the term of the Term Redemption Date for an additional 364 day period.

The holders of VMTPS, voting as a separate class, have the right to elect at least two directors. The holders of VMTPS will vote as a separate class on certain other matters, as required by law. The fund's Board of Directors (the “Board”) has designated Nathan Leventhal and Benaree Pratt Wiley as directors to be elected by the holders of VMTPS.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the

FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Board. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.

The Service’s procedures are reviewed by Dreyfus under the general supervision of the Board.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.

The following is a summary of the inputs used as of August 31, 2015 in valuing the fund’s investments:


	Level 1 - Unadjusted Quoted Prices	Level 2 - Other Significant Observable Inputs	Level 3 -Significant Unobservable Inputs	Total
Assets ($)
Investments in Securities:
Municipal Bonds^†	-	355,273,741	-	355,273,741
Liabilities ($)
Floating Rate Notes^††	-	(36,805,000)	-	(36,805,000)
VMTPS^††	-	(75,000,000)	-	(75,000,000)

^† See Statement of Investments for additional detailed categorizations.

^†† Certain of the fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes.

At August 31, 2015, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when issued or delayed delivery basis may be settled a month or more after the trade date.

(c) Dividends to Common Shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net are normally declared and paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

For Common Shareholders who elect to receive their distributions in additional shares of the fund, unless such Common Shareholder elects to receive cash as provided below, such distributions will be reinvested at the lower of the market price or net asset value per share (but not less than 95% of the market price). If market price is equal to or exceeds net asset value, shares will be issued at net asset value. If net asset value exceeds market price or if a cash dividend only is declared, Computershare Inc. (“Computershare”), the fund’s transfer agent, will buy fund shares in the open market and reinvest those shares accordingly.

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

On August 4, 2015, the Board declared a cash dividend of $.0625 per share from investment income-net, payable on September 1, 2015 to Common Shareholders of record as of the close of business on August 18, 2015.

(d) Dividends to shareholders of VMTPS: Dividends on VMTPS are normally declared daily and paid monthly. The Applicable Rate is equal to the rate per annum that results from the sum of the (a) Applicable Base Rate and (b) Ratings Spread as determined pursuant to the Applicable Rate Determination for the VMTPS on the Rate Determination Date immediately preceding such Subsequent Rate Period. The Applicable Rate of the VMTPS was equal to the sum of 1.25% per annum plus the Securities Industry and Financial Markets Association Municipal Swap Index rate of .02% on August 26, 2015. The dividend rate as of August 31, 2015 for the VMTPS was 1.27%.

(e) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, which can distribute tax-exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended August 31, 2015, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended August 31, 2015, the fund did not incur any interest or penalties.

Each tax year in the two-year period ended February 28, 2015 remains subject to examination by the Internal Revenue Service and state taxing authorities.

Under the Regulated Investment Company Modernization Act of 2010, the fund is permitted to carry forward capital losses for an unlimited period. Furthermore, capital loss carryovers retain their character as either short-term or long-term capital losses.

The fund has an unused capital loss carryover of $37,743,252 available for federal income tax purposes to be applied against future net realized capital gains, if any, realized subsequent to February 28, 2015. The fund has $30,992,442 of short-term capital losses and $6,750,810 of long-term capital losses which can be carried forward for an unlimited period.

The tax character of distributions paid to shareholders during the fiscal year ended February 28, 2015 was as follows: tax-exempt income $13,783,552 and ordinary income $2,933. The tax character of current year distributions will be determined at the end of the current fiscal year.

(f) VMTPS: In the fund’s Statement of Assets and Liabilities, VMTPS aggregate liquidation preference is shown as a liability since they have a stated mandatory redemption date of July 29, 2018. .Dividends paid to VMTPS are treated as interest expense and recorded as incurred. Costs directly related to the issuance of the VMTPS are considered debt issuance costs which have been deferred and are being amortized into expense over the life of the VMTPS.

NOTE 2—Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement (the “Agreement”) with Dreyfus, the management fee is computed at the annual rate of .65% of the value of the fund's daily total assets, including any assets attributable to effective leverage, minus certain defined accrued liabilities (the “Managed Assets”) and is payable monthly.

Pursuant to a sub-investment advisory agreement between Dreyfus and Standish, Dreyfus pays Standish a monthly fee at the annual rate of .27% of the value of the fund’s average daily Managed Assets.

(b) The fund compensates The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets and transaction activity. During the period ended August 31, 2015, the fund was charged $12,649 pursuant to the custody agreement.

The fund has an arrangement with the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

The fund compensates The Bank of New York Mellon under a Redemption and Paying Agent Agreement for providing certain transfer agency and payment services with respect to the VMTPS for the fund. During the period ended August 31, 2015, the fund was charged $3,750 for the services provided by the Redemption and Paying Agent.

During the period ended August 31, 2015, the fund was charged $3,243 for services performed by the Chief Compliance Officer and his staff.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $198,132, custodian fees $12,600, Redemption and Paying Agent fees $8,125 and Chief Compliance Officer fees $1,042.

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 3—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended August 31, 2015, amounted to $19,353,845 and $19,971,335, respectively.

Inverse Floater Securities: The fund participates in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds are transferred to a trust (the “Trust”). The Trust typically issues two variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One of these variable rate securities pays interest based on a short-term floating rate set by a remarketing agent at predetermined intervals (“Trust Certificates”). A residual interest tax-exempt security is also created by the Trust, which is transferred to the fund, and is paid interest based on the remaining cash flows of the Trust, after payment of interest on the other securities and various expenses of the Trust. An inverse floater security may be collapsed without the consent of the fund due to certain termination events such as bankruptcy, default or other credit event.

The fund accounts for the transfer of bonds to the Trust as secured borrowings, with the securities transferred remaining in the fund’s investments, and the related floating rate certificate securities reflected as fund liabilities in the Statement of Assets and Liabilities.

The fund may invest in inverse floater securities on either a non-recourse or recourse basis. These securities are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to a termination event. When the fund invests in inverse floater securities on a non-recourse basis, the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event to the holders of the Trust Certificates. When this occurs, the Liquidity Provider typically liquidates all or a portion of the municipal securities held in the Trust. A liquidation shortfall occurs if the Trust Certificates exceed the proceeds of the sale of the bonds in the Trust (“Liquidation Shortfall”). When a fund invests in inverse floater securities on a recourse basis, the fund typically enters into a reimbursement agreement with the Liquidity Provider where the fund is required to repay the Liquidity Provider the amount of any Liquidation

Shortfall. As a result, a fund investing in a recourse inverse floater security bears the risk of loss with respect to any Liquidation Shortfall.

The average amount of borrowings outstanding under the inverse floater structure during the period ended August 31, 2015 was approximately $36,805,000, with a related weighted average annualized interest rate of 1.01%.

VMTPS: The average amount of borrowings outstanding for the VMTPS during the period ended August 31, 2015 was approximately $75,000,000, with a related weighted average annualized interest rate of 1.30%.

At August 31, 2015, accumulated net unrealized appreciation on investments was $20,819,222, consisting of $22,959,375 gross unrealized appreciation and $2,140,153 gross unrealized depreciation.

At August 31, 2015, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

PROXY RESULTS (Unaudited)

Common Shareholders and holders of VMTPS voted together as a single class on the following proposal presented at the annual shareholders’ meeting held on August 11, 2015.


		Shares
		For	Authority Withheld
To elect three Class I Directors: ^†
	Francine J. Bovich^††	16,930,545	682,464
	Gordon J. Davis	16,843,204	769,805
	Roslyn M. Watson	16,934,233	678,776

^†The terms of these Directors expire in 2018.

^††Francine J. Bovich was elected as a Board Member on by the Board April 30, 2015.

INFORMATION ABOUT THE RENEWAL OF THE FUND'S MANAGEMENT AGREEMENT (Unaudited)

At a meeting of the fund’s Board of Directors held on July 22-23, 2015, the Board considered the renewal of the fund’s Management Agreement, pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the “Agreement”), and the Sub-Investment Advisory Agreement (together, the “Agreements”), pursuant to which Standish Mellon Asset Management Company, LLC (the “Subadviser”) provides day-to-day management of the fund’s investments. The Board members, a majority of whom are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of Dreyfus and the Subadviser. In considering the renewal of the Agreements, the Board considered all factors that it believed to be relevant, including those discussed below. The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board considered information provided to them at the meeting and in previous presentations from Dreyfus representatives regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex. Dreyfus representatives noted that the fund is a closed-end fund without daily inflows and outflows of capital, and provided the fund’s asset size.

The Board also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Board also considered Dreyfus’ extensive administrative, accounting, and compliance infrastructures, as well as Dreyfus’ supervisory activities over the Subadviser.

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended May 31, 2015, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in

INFORMATION ABOUT THE RENEWAL OF THE FUND'S MANAGEMENT AGREEMENT (Unaudited) (continued)

part from fund financial statements available to Lipper as of the date of its analysis. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds. The Board discussed the results of the comparisons and noted that the fund’s total return performance on a net asset value basis was above the Performance Group and Performance Universe medians for the one-year period and below the Performance Group and Performance Universe medians for the two-year period, and the fund’s total return performance on a market price basis was below the Performance Group median and at the Performance Universe median for the one-year period shown. The Board also noted that the fund’s yield performance on a net asset value basis was below the Performance Group and Performance Universe medians for both one-year periods ended May 31st, and the fund’s yield performance on a market price basis was approximately equal to the Performance Group and Performance Universe medians for one of the two one-year periods ended May 31st. Dreyfus also provided a comparison of the fund’s calendar year total return for 2014 to the return of the fund’s Lipper category average.

The Board also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons. The Board noted that, based on common assets alone, the fund’s contractual management fee was slightly above the Expense Group median and the fund’s actual management fee and total expenses were above the Expense Group and Expense Universe medians. The Board noted that, based on common and leveraged assets together, the fund’s actual management fee and total expenses were above the Expense Group and Expense Universe medians.

Dreyfus representatives reviewed with the Board the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Subadviser or its affiliates for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients. They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors, noting that the fund is a closed-end fund. The Board considered the relevance of the

fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.

The Board considered the fee to the Subadviser in relation to the fee paid to Dreyfus by the fund and the respective services provided by the Subadviser and Dreyfus. The Board also noted the Subadviser’s fee is paid by Dreyfus (out of its fee from the fund) and not the fund.

Analysis of Profitability and Economies of Scale. Dreyfus representatives reviewed the expenses allocated and profit received by Dreyfus and its affiliates and the resulting profitability percentage for managing the fund and the aggregate profitability percentage to Dreyfus and its affiliates for managing the funds in the Dreyfus fund complex, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board also had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex. The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

The Board considered, on the advice of its counsel, the profitability analysis (1) as part of its evaluation of whether the fees under the Agreements bear a reasonable relationship to the mix of services provided by Dreyfus and the Subadviser, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Since Dreyfus, and not the fund, pays the Subadviser pursuant to the Sub-Investment Advisory Agreement, the Board did not consider the Subadviser’s profitability to be relevant to its deliberations. Dreyfus representatives noted that because the fund is a closed-end fund without daily inflows and outflows of capital, there were not at this time significant economies of scale to be realized by Dreyfus in managing the fund’s assets. Dreyfus representatives also noted that, as a result of shared and allocated costs among funds in the Dreyfus fund complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board also considered potential benefits to Dreyfus and the Subadviser from acting as investment

INFORMATION ABOUT THE RENEWAL OF THE FUND'S MANAGEMENT AGREEMENT (Unaudited) (continued)

adviser and sub-investment adviser, respectively, and noted that there were no soft dollar arrangements in effect for trading the fund’s investments.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreements. Based on the discussions and considerations as described above, the Board concluded and determined as follows.

· The Board concluded that the nature, extent and quality of the services provided by Dreyfus and the Subadviser are adequate and appropriate.

· Taking into account the fund’s limited performance history, the Board generally was satisfied with the fund’s performance.

· The Board concluded that the fees paid to Dreyfus and the Subadviser were reasonable in light of the considerations described above.

· The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the management of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

In evaluating the Agreements, the Board considered these conclusions and determinations and also relied on its previous knowledge, gained through meetings and other interactions with Dreyfus and its affiliates and the Subadviser, of the fund and the services provided to the fund by Dreyfus and the Subadviser. The Board also relied on information received on a routine and regular basis throughout the year relating to the operations of the fund and the investment management and other services provided under the Agreements, including information on the investment performance of the fund in comparison to similar funds and benchmark performance indices; general market outlook as applicable to the fund; and compliance reports. In addition, the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board’s conclusions may be based, in part, on

their consideration of the same or similar arrangements in prior years. The Board determined to renew the Agreements.

NOTES

OFFICERS AND DIRECTORS
Dreyfus Municipal Bond Infrastructure Fund, Inc.

200 Park Avenue
New York, NY 10166


Directors		Officers (continued)
Joseph S. DiMartino, Chairman		Chief Compliance Officer
Francine J. Bovich		Joseph W. Connolly
J. Charles Cardona ^†
Gordon J. Davis ^†		Portfolio Managers
Isabel P. Dunst ^†		Jeffrey Burger
Nathan Leventhal ^††		Thomas Casey
Robin A. Melvin		Daniel Rabasco
Roslyn M. Watson		Christine L. Todd
Benaree Pratt Wiley ^††
† Interested Board Member		Manager
†† Elected by holders of Variable Rate Municipal Term		The Dreyfus Corporation

Officers		Custodian
President		The Bank of New York Mellon
Bradley J. Skapyak
Chief Legal Officer		Counsel
Bennett A. MacDougall		Stroock & Stroock & Lavan LLP
Vice President and Secretary
Janette E. Farragher		Transfer Agent,
Vice President and Secretary		Dividend Disbursing Agent
James Bitetto		and Registrar
Joni Lacks Charatan		Computershare Inc.
Joseph M. Chioffi		(Common Stock)
John B. Hammalian		The Bank of New York Mellon
Maureen E. Kane		(VMTP Shares)
Sarah S. Kelleher
Jeff Prusnofsky		Stock Exchange Listing
Treasurer		NYSE Symbol: DMB
James Windels
Assistant Treasurer		Initial SEC Effective Date
Richard Cassaro		4/26/13
Gavin C. Reilly
Robert S. Robol
Robert Salviolo
Robert Svagna
The fund’s net asset value per share appears in the following publications: Barron’s, Closed-End Bond Funds section under
the heading “Municipal Bond Funds” every Monday; Wall Street Journal, Mutual Funds section under the heading
“Closed-End Funds” every Monday.

Notice is hereby given in accordance with Section 23(c) of the Act that the fund may purchase shares of its common stock in the
open market when it can do so at prices below the then current net asset value per share.

For More Information

Dreyfus Municipal Bond Infrastructure Fund, Inc.

200 Park Avenue
New York, NY 10166

Manager

The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Sub-Investment Adviser

Standish Mellon Asset
Management Company LLC

BNY Mellon Center
201 Washington Street
Suite 2900
Boston, MA 02108-4408

Custodian

The Bank of New York Mellon
225 Liberty Street
New York, NY 10286

Transfer Agent &
Registrar (Common Stock)

Computershare Inc.
480 Washington Boulevard
Jersey City, NJ 07310

Dividend Disbursing Agent (Common Stock)

Computershare Inc.
P.O. Box 30170
College Station, TX 77842


Ticker Symbols: DMB

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (phone 1-800-SEC-0330 for information).

Information regarding how the fund voted proxies related to portfolio securities for the most recent 12-month period ended June 30 is available at www.dreyfus.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.

The fund posts regularly certain information at https://public.dreyfus.com/insightsideas/
research-articles/spash/DMB.html, including certain asset coverage and leverage ratios (within 5 business days of the last day of each month) and a fact sheet containing certain statistical information (within 15 business days of the last day of each month).

0805SA0815

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures applicable to Item 10.

Item 11. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus Municipal Bond Infrastructure Fund, Inc.

By: /s/Bradley J. Skapyak

Bradley J. Skapyak,

President

Date: October 22, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Bradley J. Skapyak

Bradley J. Skapyak,

President

Date: October 22, 2015

By: /s/ James Windels

James Windels,

Treasurer

Date: October 22, 2015

EXHIBIT INDEX

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)