Austin-Bergstrom International Airport (AUS) has secured $400 million of funding after a successful Airport System Revenue Bond sale to investors. The funds will support near-term Airport Expansion and Development Program (AEDP) projects. Over the lifetime of the programme, an estimated $3.5 to $4 billion will be invested in airport improvements to support expected growth in passenger traffic.
“Securing this funding is a milestone for the Airport Expansion and Development Program,” said Gina Fiandaca, Assistant City Manager for Mobility. “I commend the City of Austin Department of Aviation and Financial Services teams for working tirelessly over the last several months to prepare for this bond sale and secure this financing. 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. The interest from investors, therefore, allowed the airport to lower its borrowing yields up to nine basis points, which in return creates approximately $5 million 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 Department of Aviation’s robust financial management has allowed the airport to fund design work for the AEDP to date with cash on hand. 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.
AUS CEO Jacqueline Yaft to deliver keynote on how design, technology and innovation will future-proof airport operations at FTE Global 2022 (7-9 September, Las Vegas)
Austin-Bergstrom International Airport is undertaking the most extensive airport improvement programme in its history. We are delighted to announce that the airport’s Chief Executive Officer Jacqueline Yaft will be delivering a keynote presentation on how design, technology, and innovation can contribute to a future-ready airport that delivers upgraded guest experiences through interactive installations, while also preserving the city’s distinct culture, flavour, and community at the upcoming FTE Global 2022 show in Las Vegas this September. Find out more and register to attend here.