JFK's New Terminal One concludes $2.55bn green bond issuance

The New Terminal One (NTO) at John F. Kennedy (JFK) International Airport has concluded a $2.55bn green bond issuance. New Terminal One confirmed that proceeds from the 2024 Series bonds will be primarily used to finance and refinance a portion of the costs of constructing the initial phase of the New Terminal One development, a portion of which were initially funded with the bank facility that was raised in June 2022. The Series 2024 special facilities revenue bonds were initially marketed at $1.5 billion. Due to investor demand indicated during pre-marketing and then demonstrated during the order period, the issuance was upsized to $2.55bn. ""Our continued success in refinancing through this landmark bond issuance demonstrates the confidence of the capital markets in The New Terminal One and our progress in delivering a new gateway for New York and our nation,"" said New Terminal One chief executive officer Jennifer Aument. She continued: ""This refinancing re-affirms our commitment to maintaining the New Terminal One's position of financial strength, as we gather momentum towards our scheduled opening in 2026."" This 2024 issuance allocated 40% of the underwriting syndicate to designated minority and women-owned business enterprises (MWBEs), continuing NTO's commitment to record levels of MWBE participation in its bond transactions. The privately funded New Terminal One is backed by a consortium of financial, operating, and labour partners: Ferrovial, JLC Infrastructure, Ullico and Carlyle. The New York Transportation Development Corporation acted as conduit issuer of the Series 2024 bonds on behalf of New Terminal One. BofA Securities and Loop Capital Markets acted as joint bookrunners, with Barclays acting as co-senior manager. The bonds were designated as green bonds by Kestrel Verifiers. Ramirez & Co. served as New Terminal One's municipal and pricing advisor. Assured Guaranty provided insurance on $800 million of the bonds. The New Terminal One is scheduled for full completion by 2030 and will offer a total of 23 gates in a 2.6 million square feet facility over a 133-acre footprint.