A successful airport system revenue bond sale to investors has helped Austin-Bergstrom International Airport (AUS) secure $400m of funding.
The funds will support near-term Airport Expansion and Development Program (AEDP) projects for the Texan hub. Over the AEDP’s lifetime an estimated $3.5 to $4bn will be invested in airport improvements to support more passengers and more flights.
“Securing this funding is a milestone for the Airport Expansion and Development Program,” said Gina Fiandaca, assistant city manager for mobility. “This bond sale moves us closer to breaking ground on exciting new airport improvement projects that will modernise AUS.”
Earlier this year, S&P Global upgraded the airport’s credit rating from an A to an A+, making AUS one of only seven airports in the US to receive a credit upgrade from S&P in 2022. The airport’s upgraded credit rating, overall financial outlook, and strong pandemic recovery led to strong investor interest. This allowed the airport to lower its borrowing yields up to nine basis points, which in return creates approximately $5m of debt service savings for AUS over the lifetime of the bonds.
“We are grateful for the strong interest from investors,” said Jacqueline Yaft, AUS chief executive officer. “Through our pandemic recovery efforts, we prioritised financial stability and through those efforts, our financial outlook is not only stable but strong. This bond sale allows us to leverage our strong financial health into delivering an improved airport experience for all.”
The bond funding will support construction for gate capacity increases at the Barbara Jordan Terminal, the new baggage handling system, security enhancements and additional airfield infrastructure.
Owned and operated by the City of Austin, Austin-Bergstrom International Airport is the second fastest growing mid-sized airport in the US.