The Hawai‘i Department of Transportation (HDOT) has announced that the state’s Airports System has successfully raised $849 million in bond financing to fund approximately $600 million of essential projects to upgrade and expand airport infrastructure, including runway repairs, terminal renovations, security enhancements and the construction of new facilities. The financing also provides for a refinancing of $233 million of existing debt, generating over $23 million of interest cost savings. The transaction represents the largest bond issuance for the Airports System in its history.
The bonds received ratings of Aa3 / AA- / AA- from Moody’s, S&P and Fitch, respectively. This includes a Moody’s upgrade to Aa3 from A1, which cited the Airports System’s strong passenger traffic performance, the state’s economic resilience and the state’s 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. S&P Global Ratings and Fitch Ratings both affirmed the Airports System’s bonds and the outlook as stable ahead of the sale.
“This successful issuance reflects the bond market’s confidence in the future of Hawai‘i and the critical role our airports system has in driving economic growth,” said Governor Josh Green, M.D. “We are grateful for the support of our investors and are excited to continue developing infrastructure that benefits both our residents and visitors.”
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 Hawai‘i and across the nation.
“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 Hawai‘i Department of Transportation 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.”
