Atlanta is proposing a $1 billion municipal-bond borrowing that will be utilized to help in Hartsfield-Jackson Atlanta International Airport Rehabilitation. The funds will be utilized in funding the infrastructure improvements at the Hartsfield-Jackson Atlanta International Airport, the busiest airport in the world.
The city has laid plans to issue approximately $970 million of bonds which will be subject to the alternative minimum tax. Additionally, there will be an approximate $50 million of non-ATM bonds. This was revealed by a securities filing outlining the borrowing plans.
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Project Factsheet
Program goals:
- Enhance passenger experience and service.
- Increase airport capacity and operational efficiency.
- Renew and replace existing facilities.
- Improve the airport’s aesthetic appeal.
Key project components: The program includes a wide range of projects, such as:
- Terminal modernization: Upgrading the domestic terminal complex with new architectural elements, like the soaring steel canopies over the roadways.
- Concourse expansion: Expanding and modernizing concourses, most notably the complex $1.4 billion expansion of Concourse D, which uses an innovative modular construction approach to remain operational.
- New gates: Adding new gates to concourses, including five new domestic gates to Concourse T.
- Airfield improvements: Construction of a new sixth runway, taxiway realignments, and pavement replacement.
- Parking and transit: Rebuilding existing parking structures, constructing new parking facilities, and expanding the SkyTrain automated people mover.
- Air cargo: Expanding air cargo facilities and operations.
Specific projects funded by this bond: The proceeds are intended to finance projects including:
- The Consolidated Rental Car Center (CONRAC).
- SkyTrain expansion.
- Upgrades to parking infrastructure, including new parking decks with EV charging stations.
Details: The bond is expected to be issued in two parts:
- Approximately $970 million of bonds subject to the alternative-minimum tax (AMT).
- Roughly $50 million of non-AMT bonds.
Green Bonds
Furthermore, Atlanta is considering assigning one or more of the issue as “green bonds,” the filing added. If given a greenlight, the green label would align with the offering with ESG trends. Therefore, this would lead to the attraction of impact-focused investors.
Projects such as next-generation parking deck with EV charging stations and energy-efficient terminal upgrades could qualify for green certification. This further enhances the marketability of the bond.
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By securing financing via bonds rather than bank loans, Atlanta acquires greater control over its airport’s financial trajectory. This approach is considered effective as it avoids the volatility of traditional debt markets, locking in long-term low cost capital.
The bond offering of Atlanta exemplifies how infrastructure-backed municipal-bonds can bridge public investment and private capital. By targeting a high growth and high impact asset such as the Hartsfield-Jackson, Atlanta is not only addressing immediate operational needs but also laying the foundation for decades of economic returns.
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