The New Terminal One at New York John F Kennedy (JFK) International Airport has closed its US$1.367bn Green Bond issuance.
Proceeds from the Series 2025 bonds will be used to finance the remainder of the anticipated costs relating to The New Terminal One’s Phase A, opening in 2026. The latest bond issuance follows the terminal’s historic US$2.55bn Green Bond issuance in 2024 – the largest ever municipal bond financing for an airport project.
Securing investor support
Even with a large slate of competing offerings in the market on the day of pricing, investors submitted nearly US$4.3bn in orders for The New Terminal One’s Series 2025 bonds. This demand enabled the transaction to be repriced, reducing overall borrowing costs. 
The New York Transportation Development Corporation acted as conduit issuer of the Series 2025 bonds on behalf of The 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 US$600m of the Series 2025 bonds.
Underwriters for the new bond issuance include BofA Securities (left lead bookrunner); Barclays (joint bookrunner); Loop Capital Markets (joint bookrunner); Blaylock Van; Cabrera Capital Markets; Goldman Sachs & Co.; J P Morgan; Ramirez & Co., Inc.; RBC Capital Markets; Rice Financial Products Company; and Stern Brothers & Co.
This 2025 Issuance allocated over 32% of the underwriting syndicate to designated minority and women-owned business enterprises (MWBEs), continuing The New Terminal One’s commitment to industry-leading levels of MWBE participation in its bond transactions.
“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 toward our 2026 opening,” said 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.”
“In a highly competitive market, the strength of investor demand allowed us to tighten pricing and optimize our cost of capital – a testament to both the quality of this project and the disciplined financial strategy we’ve maintained since inception,” said Manoj Patel, chief financial officer of The New Terminal One.
US$19bn transformation of JFK Airport
The New Terminal One is a key component of the Port Authority of New York and New Jersey’s US$19bn transformation of JFK Airport, with two new terminals, two expanded and modernized terminals, a new ground transportation center and an entirely new, simplified roadway network.
For more of the top insights into the future of NTO at JFK Airport, read PT World’s exclusive interview with Marisa Von Wieding, vice president (VP) of operations, and Palmina Whelan, capital program director, of The New Terminal One at JFK here.