Billion dollar bonds sale completed for JFK’s New Terminal One

The New Terminal One at New York’s John F Kennedy International Airport has successfully closed its $1.367 billion Green Bond issuance, underscoring strong investor support and confidence in the project.

Proceeds from the Series 2025 Bonds will be used to finance the remainder of the anticipated costs relating to New Terminal One’s Phase A, opening in 2026.

The latest bond issuance follows the terminal’s historic $2.55 billion Green Bond issuance in 2024 – the largest ever municipal bond financing for an airport 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 modernised terminals, a new ground transportation centre and an entirely new, simplified roadway network.

“The success of our green bond issuance reaffirms investor confidence in the New Terminal One and further strengthens our foundation for innovation and delivery as we progress towards our 2026 opening,” noted Jennifer Aument, CEO of The New Terminal One.

“We are grateful for the support of our valued investors and the dedication of our financial sponsors. Together, we are building a terminal that will set new global standards for excellence and environmental stewardship.”

Even with a large slate of competing offerings in the market on the day of pricing, investors submitted nearly $4.3 billion in orders for New Terminal One’s Series 2025 bonds. This strong demand enabled the transaction to be repriced, reducing overall borrowing costs.

“In a highly competitive market, the strength of investor demand allowed us to tighten pricing and optimise our cost of capital — a testament to both the quality of this project and the disciplined financial strategy we’ve maintained since inception,” claimed Manoj Patel, chief financial officer of The New Terminal One.

The New York Transportation Development Corporation acted as conduit issuer of the Series 2025 bonds on behalf of New Terminal One.

Designated as Green Bonds by Kestrel Verifiers for adhering to rigorous sustainability standards, the issuance demonstrates the project’s ambition and commitment to responsible infrastructure development. Assured Guaranty provided insurance on $600 million of the Series 2025 bonds.

This 2025 Issuance allocated over 32% of the underwriting syndicate to designated minority and women-owned business enterprises (MWBEs), continuing New Terminal One’s commitment to industry-leading levels of MWBE participation in its bond transactions.