The bond financing will support construction work to boost gate capacity at the Barbara Jordan Terminal. Credit: Austin-Bergstrom International Airport.

Austin-Bergstrom International Airport (AUS) in Texas, US, has obtained financing of $400m to facilitate its near-term Airport Expansion and Development Program (AEDP) projects.

Expected to require an investment of $3.5 to $4bn, these projects will drive airport upgrades in an effort to allow more flights and greater passenger volume. 

The infusion of $400m follows an Airport System Revenue Bond sale to investors, with investor interest enabling the airport to cut down its borrowing yields by up to nine basis points.

Over the bonds’ lifetime, this will create debt service savings of nearly $5m for the airport.

The bond financing will support construction work to boost gate capacity at the Barbara Jordan Terminal.

See Also:

It will also support the new baggage handling system, additional airfield infrastructure and security upgrades.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

AUS will use cash on hand to offer financing for AEDP’s design work so far.

The airport received similar bond financing for the nine-gate terminal expansion that was launched in 2019.

AEDP will also be funded through Federal Aviation Administration grants, in addition to cash reserves, and existing and future airport revenue.

According to AUS, investor interest in the airport was driven by its strong rebound from the Covid-19 crisis, overall financial outlook, and its credit rating upgrade from A to A+.

The rating upgrade from S&P Global is said to make the airport one of seven US airports to have its rating improved by the agency this year.

AUS CEO Jacqueline Yaft said: “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.”