The New Terminal One at John F. Kennedy International Airport has successfully concluded a historic $2.55 billion Green Bond issuance, the largest ever municipal bond financing for an airport project.
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 was 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 ultimately upsized to $2.55 billion. This outcome re-affirms investor confidence in the much-anticipated New Terminal One project.
The New Terminal One is a key component of the Port Authority of New York and New Jersey’s $19 billion transformation of JFK Airport into a world-class gateway, with two new terminals, two expanded and modernized terminals, a new ground transportation center, and an entirely new, simplified roadway network. Scheduled to open in 2026, the privately funded New Terminal One is backed by a consortium of financial, operating, and labor partners: Ferrovial, JLC Infrastructure, Ullico, and Carlyle.
“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 The New Terminal One Chief Executive Officer Jennifer Aument. “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.”
The New York Transportation Development Corporation acted as conduit issuer of the Series 2024 bonds on behalf of The 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, an independent second-party opinion provider that confirmed that their uses conformed with Green Bond principles. Ramirez & Co. served as New Terminal One’s municipal and pricing advisor. Assured Guaranty provided insurance on $800 million of the bonds.
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 record participation by MWBEs in all areas of this transaction (joint book runner, co-managers, financial advisors, and counsel) aligns with our core commitment to diverse participation across all aspects of The New Terminal One, ensuring that we continue to deliver impact to our community,” said The New Terminal One Chief Financial Officer Manoj Patel.
The New Terminal One finance team, led by Patel and Director of Financial Planning, Analysis, and Strategy Bryan Rowan, worked with the New Terminal One’s sponsors, bankers, attorneys, and advisors to execute this historic bond issuance. The decision to upsize the bond offering enabled New Terminal One to capitalize on an improving debt market and significantly de-risk the program at attractive rates.
With a capital commitment of $9.5 billion, The New Terminal One is the country’s largest public-private partnership and the largest single-asset project financing in US history.
The New Terminal One’s Phase A will comprise a headhouse and 14 widebody aircraft gates. The project topped off in March 2024, with the placement of the steel beam marking the development’s highest point. Installation of the headhouse’s curtain wall and key infrastructure systems commenced earlier this year, and work is underway to make the building weather-tight.
Scheduled for full completion in 2030, the New Terminal One will offer 23 gates in a 2.6 million-square-foot facility over a 133-acre footprint. It will replace the existing Terminal 1 and the former Terminals 2 and 3 and will handle anticipated annual traffic of more than 16 million passengers in 2030—about three times the number of passengers handled by the existing Terminal 1 in 2023.
