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