Today, the San Diego County Regional Airport Authority concluded a bond sale amounting to $1.062 billion, an important advancement in funding the Terminal 1 project at San Diego International Airport. With prior bond sales from 2021, the Airport Authority has raised a total of $2.35 billion towards the estimated $3.4 billion for the project. Terminal 1's first phase, slated for completion in 2025 late summer, aligns with the airport's commitment to meet the growing demands of the local community, according to the San Diego County Regional Airport Authority.
Kimberly Becker, the Airport Authority's President and CEO, expressed her anticipation, stating, "the bond sale is a key to unlocking exceptional airport experiences for our community and the world." She further highlighted the role of the San Diego International Airport as a regional economic catalyst, providing jobs and fostering tourism.
The finance sources comprise $74.675 million in Senior Series A (Non-AMT) bonds and $987.305 million in Series B (AMT) bonds. This couldn't have been obtained without the collective efforts of the Airport Authority and its financial partners. The 5.18 percent true interest cost demonstrates investor confidence in the Authority's capability to handle the funds and push forward a critical infrastructure upgrade but, the proceeds from these bonds will address immediate project funding requirements like terminal and roadway construction.
In the midst of market volatility and rising interest rates, the bond sale attracted over $3.4 billion in orders from investors. This can be credited to, the Airport Authority's solid financial standing, evidenced by positive credit ratings from reputable agencies such as Fitch Ratings and Moody's Investor Services. The bond sale proceeds, alongside funds raised in 2021, are expected to finance the Terminal 1 construction until mid-2025, with another bond sale being contemplated for additional funding.
