Aloha State News

The Hawai‘i Department of Transportation (HDOT) has announced a successful bond issuance by the state’s Airports System, raising $849 million. This funding will support approximately $600 million in projects aimed at upgrading and expanding airport infrastructure, such as runway repairs, terminal renovations, security enhancements, and new facility construction. Additionally, the transaction allows for refinancing $233 million of existing debt, resulting in over $23 million in interest cost savings. This marks the largest bond issuance in the history of the Airports System.

The bonds were rated Aa3 by Moody’s and AA- by both S&P and Fitch. Notably, Moody’s upgraded its rating from A1 to Aa3 due to strong passenger traffic performance and Hawai‘i's economic resilience as a tourism destination. This is the first instance where the Airports System received double-A ratings from all three agencies. Both S&P Global Ratings and Fitch Ratings affirmed stable outlooks for these bonds ahead of their sale.

Governor Josh Green expressed confidence in Hawai‘i's future following this financial achievement: “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.” He acknowledged investor support and highlighted ongoing infrastructure development benefits for residents and visitors alike.

The Series 2025 Airports System Revenue Bonds garnered significant attention during pricing with $4.9 billion in orders—5.8 times more than offered—attracting over 100 distinct investors from various institutions to individual retail investors nationwide.

Hawai‘i Department of Transportation Director Ed Sniffen emphasized air travel's importance: “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.” He noted that this bond issuance would provide essential funding for continued airport infrastructure upgrades, modernization efforts, and improved operational efficiencies.

Further details about upcoming projects can be found on HDOT's website.