New Terminal One at JFK secures $1.367 billion green bond to support 2026 opening

Credit: The New Terminal One at JFK

The New Terminal One at New York’s John F. Kennedy International Airport has successfully closed a $1.367 billion Green Bond issuance, reflecting strong investor confidence in the project. Proceeds from the Series 2025 Bonds will be used to fund the remainder of Phase A construction, with the terminal set to open in 2026.

This follows the terminal’s record-setting $2.55 billion Green Bond issuance in 2024, the largest municipal bond financing ever for an airport project. Together, these financings support the Port Authority of New York and New Jersey’s $19 billion redevelopment of JFK Airport, which includes two new terminals, modernised facilities, a new ground transportation centre and an improved road 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,” said Jennifer Aument, Chief Executive Officer 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.”

Despite a competitive market, investors submitted nearly $4.3 billion in orders for the Series 2025 Bonds. This demand allowed for a repricing of the bonds, reducing overall borrowing costs.

“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.

The New York Transportation Development Corporation acted as the conduit issuer on behalf of the terminal. Kestrel Verifiers designated the bonds as Green Bonds for meeting high sustainability criteria, while Assured Guaranty provided insurance on $600 million of the issue.

Underwriters included BofA Securities (lead bookrunner), Barclays, Loop Capital Markets, Blaylock Van, Cabrera Capital Markets, Goldman Sachs, J.P. Morgan, Ramirez & Co., RBC Capital Markets, Rice Financial Products, and Stern Brothers. Notably, over 32% of the underwriting syndicate was allocated to minority and women-owned business enterprises (MWBEs), reinforcing New Terminal One’s commitment to inclusive financial participation.

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