Denver International Airport raises $856 million for redevelopment with bond sale

Denver International Airport has sold $856 million in airport revenue bonds.

The bond sale will provide $394 million of funding for the airport’s South Terminal redevelopment programme, as well as other capital improvement projects, and $462 million to reduce debt service costs.

Mayor, Michael Hancock, said: “Denver International Airport is a key element in our plan to make a great city even greater.

“The outstanding response to this sale is a testament to DIA as one of the most efficient, financially sound and beautiful airports in the world.”

The sale was conducted by a team of nine investment banks with Barclays serving as the lead firm for the transaction.

Patrick Heck, CFO for Denver International Airport, said: “This strong acceptance of DIA bonds demonstrates the market’s view of DIA as a financially strong airport with a great competitive position.”

The $856 million of bonds will be repaid from revenues of the airport.

Kim Day, Denver's aviation manager, said: “The South Terminal redevelopment programme is important to Denver and the entire metropolitan region.

“Building the DIA train station and hotel will provide many valuable construction jobs and on-going service jobs when these airport facilities open.”

The train station and hotel, which will be managed as a Westin Hotel, are due to open in 2015.