The New Terminal One at New York’s John F Kennedy (JFK) International Airport has recently completed a successful US$1. 367bn Green Bond issuance. These funds will be used to cover the remaining costs of Phase A for The New Terminal One, which is set to open in 2026. This follows the terminal’s record-breaking US$2. 55bn Green Bond issuance in 2024, the largest municipal bond financing for an airport project to date.
Investor Support
Despite facing stiff competition in the market, The New Terminal One’s Series 2025 bonds received an overwhelming demand of nearly US$4. 3bn. This allowed the transaction to be repriced, resulting in lower borrowing costs. The New York Transportation Development Corporation acted as the conduit issuer for the Series 2025 bonds on behalf of The New Terminal One. These bonds have been designated as Green Bonds by Kestrel Verifiers, meeting rigorous sustainability standards and showcasing the project’s dedication to responsible infrastructure development. Assured Guaranty also provided insurance for US$600m of the Series 2025 bonds.
The underwriting syndicate for this bond issuance includes BofA Securities (left lead bookrunner), Barclays (joint bookrunner), Loop Capital Markets (joint bookrunner), Blaylock Van, Cabrera Capital Markets, Goldman Sachs & Co. , J P Morgan, Ramirez & Co. , Inc., RBC Capital Markets, Rice Financial Products Company, and Stern Brothers & Co. A significant portion, 32%, of the underwriting syndicate has been allocated to designated minority and women-owned business enterprises (MWBEs), highlighting The New Terminal One’s commitment to industry-leading levels of MWBE participation in its bond transactions.
Moving Forward
Jennifer Aument, CEO of The New Terminal One, expressed gratitude for the support of investors and the dedication of financial sponsors, stating that the success of the Green Bond issuance demonstrates investor confidence in the project and strengthens their foundation for innovation and delivery. Manoj Patel, chief financial officer of The New Terminal One, also emphasized the strength of investor demand and the disciplined financial strategy that has been in place since the project’s inception.
Transformation of JFK Airport
The New Terminal One is a crucial part of the Port Authority of New York and New Jersey’s US$19bn transformation of JFK Airport, which includes the construction of two new terminals, the expansion and modernization of two existing terminals, a new ground transportation center, and a simplified roadway network.
For more insights into the future of The New Terminal One at JFK Airport, read PT World’s exclusive interview with Marisa Von Wieding, vice president of operations, and Palmina Whelan, capital program director, of The New Terminal One at JFK.