Developers raise $2.55 billion in bond placement for JFK Airport’s New Terminal One  


On June 27, 2024, the New Terminal One at John F. Kennedy International Airport (JFK) announced that it has successfully placed a US$2.55 billion green bond in the financial markets. 

This is the largest municipal bond ever to have been issued for an airport project. Its proceeds will be used to refinance the bank loans that enabled the construction stage of the $9.5 billion project to commence. 

The developers, a consortium that includes Ferrovial, JLC Infrastructure, Ullico, and Carlyle, were initially looking to raise only $.15 billion. Ultimately, though, demand among investors was so strong that it was decided to increase this to $2.55 billion. 

The bonds were designated as ‘green’, which means that their uses have been independently verified, in this case by Kestrel Verifiers, to conform with Green Bond principles. 

The New Terminal One is located on the south side of the airport and it requires the full re-development of the space previously occupied by JFK’s Terminal 1, 2 and 3. Its first stage is expected to open in 2026 with 14 gates, although full completion, when the facility will boast 23 gates, will be no sooner than 2030. Once fully operational, the New Terminal One will be able to handle 16 million passengers per year.  

A number of non-US airlines have already confirmed that they will be using the New Terminal One, such as Air France, KLM, Etihad Airways, LOT Polish Airlines, Korean Air, EVA Air and Air Serbia. On June 26, 2024. SAS became the latest airline to state its intention to use the new facility as soon as it is ready.  

In fact, this project is part of a broader $19 billion revamp of JFK International Airport being led by the Port Authority of New York and New Jersey. It is intended to reclaim JFK’s place as one of the world’s major air gateways. The JFK Redevelopment Program will also see the full redevelopment of Terminal 6, plus upgrades to other terminals and the airport’s land transportation connectivity. 

The JFK redevelopment package is, in turn, part of an even more ambitious program by the Port Authority of New York and New Jersey to upgrade the whole New York City airport system. A brand-new terminal opened at La Guardia Airport (LGA) in June 2022 and Newark Liberty International Airport inaugurated its fully redeveloped Terminal A in January 2023. 

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