The New Terminal One (NTO) project at John F. Kennedy International Airport has finalised a 1.367 billion USD Green Bond issuance to help finance the next phase of construction.
This marks another step in the delivery of a new international terminal at JFK as part of the wider redevelopment of the airport.
Proceeds from the 2025 Series Bonds will go towards completing Phase A of the terminal, which is currently scheduled to open in 2026. This latest financing follows a 2.55 billion USD Green Bond issuance in 2024, previously noted for being the largest municipal airport bond transaction to date.
The New Terminal One forms a central part of the Port Authority of New York and New Jersey’s wider 19 billion USD JFK redevelopment plan. This broader programme includes the construction of new terminals, the expansion and modernisation of existing ones, improved ground transport infrastructure, and a reconfigured roadway network.
Jennifer Aument, Chief Executive Officer of The New Terminal One said: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. 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.
The offering attracted approximately 4.3 billion USD in investor orders, more than three times the amount issued. This demand enabled the project to reduce its borrowing costs.
The New York Transportation Development Corporation served as conduit issuer for the bonds on behalf of NTO. The 2025 Series Bonds were designated Green Bonds by Kestrel Verifiers, based on adherence to defined sustainability criteria. Additionally, 600 million USD of the issuance was insured by Assured Guaranty.
The underwriting group for this transaction included BofA Securities (lead bookrunner), alongside Barclays, Loop Capital Markets, and several others. More than 32% of the underwriting syndicate was allocated to minority- and women-owned business enterprises (MWBEs), reflecting NTO’s stated commitment to inclusive participation in its financial arrangements.
The New Terminal One is being constructed on the site of the current Terminal 1 and former Terminals 2 and 3. The full project is being delivered in phases, with completion expected in 2030. When fully built, the terminal will cover 2.6 million square feet and house 23 gates, becoming the largest terminal at JFK by footprint.
The project is led by a consortium that includes Ferrovial, JLC Infrastructure, Ullico, and Carlyle. It is being built with union labour and has set targets for local and inclusive business participation.
