#United States #New York #Green Bonds #JFK Airport #New Terminal One

The New Terminal One at JFK Secures Funding Through Green Bonds

The New Terminal One (NTO) at John F. Kennedy International Airport has recently achieved a significant financial milestone. The project successfully closed its Green Bond issuance on July 23, 2025, raising $1.367 billion. This issuance not only reinforces investor confidence in the ambitious project but also highlights the growing trend of sustainable financial practices in infrastructure development.

Utilization of Funds

The proceeds from the Series 2025 Bonds will finance the remaining costs associated with Phase A of the New Terminal One project, which is set to open in 2026. This bond issuance comes on the heels of the $2.55 billion Green Bond issued in 2024, marking it as the largest municipal bond financing for an airport project to date.

The NTO plays a pivotal role in the Port Authority of New York and New Jersey's overarching $19 billion plan to transform JFK Airport, which encompasses the addition of two new terminals and substantial upgrades to existing facilities. The project's aim extends beyond modernization to solidify JFK's status as a world-class gateway to the New York metropolitan area and the United States.

Market Response and Investor Confidence

Despite facing competition from multiple offerings at the time of pricing, the Series 2025 bonds attracted nearly $4.3 billion in orders from investors. This robust demand allowed the pricing of the bonds to be tightened, ultimately reducing the overall cost of borrowing. Manoj Patel, the Chief Financial Officer for NTO, emphasized how this reflects both the quality of the project and their disciplined financial strategy.

In a joint statement, Jennifer Aument, the CEO of NTO, expressed gratitude for the support from investors and the commitment of financial sponsors, stating that the successful bond issuance strengthens their foundation for innovation as they approach the 2026 opening date. Aument underscored the terminal's goal of establishing new standards for excellence and environmental sustainability in airport management.

Commitment to Sustainability

Notably designated as Green Bonds by Kestrel Verifiers, the Series 2025 issuance adheres to stringent sustainability criteria. This commitment underscores the ambition to develop responsible infrastructure while setting a high bar for environmental stewardship. Assured Guaranty also played a role in providing insurance on $600 million of the issued bonds.

Diverse Underwriting Team

The underwriting of these bonds is representative of the NTO's commitment to diversity, as over 32% of the underwriting syndicate consists of minority- and women-owned business enterprises (MWBEs). This approach aims to foster industry-leading levels of participation in their financial transactions, illustrating a dedication to inclusivity and local business growth as the airport undergoes significant transformation.

The Future of JFK Airport

The New Terminal One is designed to serve as a flagship facility within the revamped JFK Airport. Construction is currently underway, with completion anticipated in 2030. The terminal will span a total of 2.6 million square feet, housing 23 gates once fully operational, ultimately becoming the largest terminal at JFK and nearly the same size as both new terminals at LaGuardia combined.

The first phase, which will include new arrival and departure halls as well as the first set of 14 gates, is expected to launch in 2026. With an ambitious vision, the NTO aims to achieve a Top 5 Skytrax ranking, bringing the international travel experience at JFK to new heights.

NTO is supported by a consortium of esteemed partners, including Ferrovial, JLC Infrastructure, Ullico, and Carlyle, emphasizing the involvement of union labor and local businesses. Their strategy includes targeting 20% participation from minority-owned enterprises, 10% from women-owned businesses, and 3% from service-disabled veteran-owned businesses, further enriching the local economy.

To learn more about this transformative project, visit the official website for further insights into the New Terminal One at JFK International Airport.