The Hawaii Department of Transportation’s Airports System completed its largest bond issuance ever last week, raising $849 million in bond financing to fund approximately $600 million to upgrade and expand airport infrastructure across the state.

What You Need To Know

  • The financing allows for a refinancing of $233 million in existing debt, saving the state more than $23 million in interest
  • The funds will help pay for runway repairs, terminal renovations, security enhancement and construction of new facilities, according to HDOT
  • This marks the first time in its history that the Airports System has double-A ratings from the three rating agencies
  • The Series 2025 Airports System Revenue Bonds attracted significant investor interest during pricing, receiving $4.9 billion of orders, or 5.8 times the amount of bonds being offered

 

The financing also allows for a refinancing of $233 million in existing debt, saving the state more than $23 million in interest.

“This successful issuance reflects the bond market’s confidence in the future of Hawaii and the critical role our airports system has in driving economic growth,” said Gov. Josh Green. “We are grateful for the support of our investors and are excited to continue developing infrastructure that benefits both our residents and visitors.”

The funds will help pay for runway repairs, terminal renovations, security enhancement and construction of new facilities, according to HDOT.

The bonds received strong ratings from Moody’s (Aa3), S&P Global Ratings (AA-) and Fitch Ratings (AA-).

The Moody’s evaluation was an upgrade from the previous A1 rating. The credit-rating company cited the Airport System’s strong passenger traffic performance as well as the state’s economic resilience and enduring desirability as a premier tourism destination.

This marks the first time in its history that the Airports System has double-A ratings from the three rating agencies.

The Series 2025 Airports System Revenue Bonds attracted significant investor interest during pricing, receiving $4.9 billion of orders, or 5.8 times the amount of bonds being offered. Orders included more than 100 distinct investors representing a broad range of institutions and mom-and-pop retail investors from Hawaii and across the nation, according to HDOT.

“As an island state, air travel is critical for our residents to connect to the world, our visitors to support our economy, and our military to defend our country,” said HDOT director Ed Sniffen. “This bond issuance provides critical funding that will allow us to deliver on our commitment to continue upgrading airport infrastructure, modernizing facilities and improving operational efficiencies.”

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.