The Hawai‘i Department of Transportation’s (HDOT) airports system recently raised $849 million in Series 2025 Airports System Revenue Bonds, the largest bond issuance in the airports system’s history.
HDOT will use the funds to refinance $233 million in existing debt and support approximately $600 million in projects that will upgrade and expand airport infrastructure. Projects include the construction of new facilities, terminal renovations, runway repairs, and security enhancements.
“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,” Ed Sniffen HDOT director, said. “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.”
The bond issuance attracted $4.9 billion in orders, 5.8 times the amount of bonds being offered, from more than 100 investors from Hawaii and nationwide.
Moody’s, S&P and Fitch rated the bonds Aa3, AA-, AA- respectively. This is the first time all three rating agencies gave the airports system double-A ratings. Moody’s rating was an upgrade from A1. The agency cited strong passenger traffic performance and the state’s desirability as a tourism destination.
HDOT operates and maintains 15 airports.