Summary

  • JFK Airport’s New Terminal One secures $2.5+ billion financing via Green Bond issuance.
  • This is the largest-ever municipal bond financing for an airport project.
  • New Terminal One will be the largest terminal at JFK, with 23 gates once complete.

New York JFK International Airport has received more than $2.5 billion in financing for its New Terminal One, having recently concluded a major Green Bond issuance. The new terminal will be made operational in phases, with the first phase opening in 2026 and the entire terminal scheduled for completion in 2030.

Largest-ever municipal bond financing for airport project

New York JFK’s ambitious New Terminal One (NTO) project has made history by successfully concluding a massive $2.55 billion Green Bond issuance, making it the largest-ever municipal bond financing for an airport project. An independent second-party opinion provider, Kestrel Verifiers, confirmed that the uses of the bonds conform with Green Bond principles.

JFK New Terminal One

Photo: New Terminal One JFK

Expectations for the new terminal are high, and investors are confident about its prospects. This is why the issuance was ultimately increased to $2.55 billion, even though the Series 2024 Special Facilities Revenue Bonds were initially marketed at $1.5 billion.

Proceeds from these bonds will be used to finance and refinance a part of the costs towards constructing the first phase of New Terminal One. The New Terminal One Chief Executive Officer Jennifer Aument commented,

“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. 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.”

NTO arrivals dining

Photo: New Terminal One JFK

According to an official statement, upsizing the bond offering allowed New Terminal One to take advantage of an improving debt market and significantly derisk the program at attractive rates.

Related

JFK’s New Terminal One Eyes An All-Electric Ground Equipment Fleet

JFK’s newest terminal is planning a future where all ground equipment is 100% emissions-free.

Allocation for minority and women-owned businesses

Those in charge of New Terminal One are also mindful that minority and women-owned business enterprises (MWBEs) are represented, and the 2024 Issuance allocated 40% of the underwriting syndicate to this cause.

The NTO is committed to record levels of MWBE participation in its bond transactions. These include joint book runner, comanagers, financial advisors, and counsel, and “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,” according to The New Terminal One Chief Financial Officer Manoj Patel.

NTO departures

Photo: New Terminal One JFK

Largest terminal at JFK

The Port Authority of New York and New Jersey is spending $19 billion to transform JFK Airport into a world-class gateway. The project includes two new terminals, two expanded and modernized terminals, a new ground transportation center, and a new, simplified roadway network.

New Terminal One is being constructed on locations occupied by current Terminal 1 and the former Terminal 2 and Terminal 3. The first phase will include the completion of the new arrivals and departures halls and the first set of 14 new gates.

NTO retail

Photo: New Terminal One JFK

In all, the NTO will be a 23-gate, international-only terminal sprawling over 2.6 million square feet, making it the largest terminal at JFK. For reference, it will be almost as big as LaGuardia Airport’s two new terminals combined.

Related

$19 Billion Redevelopment: New York’s JFK Airport Seeks New Terminal One Lounge Designers

The terminal is scheduled to open its doors in 2026.

What are your views on this? Please leave a comment below.


  • britishairways_216862008867490 (1)

    New York JFK Airport

    IATA/ICAO Code:
    JFK/KJFK

    Country:
    United States

    CEO:
    Rick Cotton (Executive Director of Port Authority of NY and NJ)

    Passenger Count :
    16,630,642 (2020)

    Runways :
    4L/22R – 3,682m (12,079 ft) |
    4R/22L – 2,560m (8,400 ft) |
    13L/31R – 3,048m (10,000 ft) |
    13R/31L – 4,423m (14,511 ft)

    Terminals:
    Terminal 1 |
    Terminal 2 |
    Terminal 4 |
    Terminal 5 |
    Terminal 7 |
    Terminal 8

Leave a Reply

Your email address will not be published. Required fields are marked *