The San Francisco International Airport announced plans to sell US$483 million worth of bonds. The bonds will be paid off by landing fees, revenue from parking and concessions and terminal rental from airline companies.
The money is set to help the airport to improve baggage-inspection systems and to construct a new air-traffic control tower. The funds will also help refinance the US$180 million debt of the airport. The facility sold debt in last November. The board approved of the five-year US$2.1 billion capital plan.
The bonds sold will have an A1 grade from Moody's Investors Service, which is the fifth-highest level. Moody's Investors Service, a ratings company, said that they have stable outlook on the airport's performance, citing a "strong market position for air travel" in the region.
Assistant deputy airport director, Kevin Kone said, "It will be received well in the sense that San Francisco has not been to market for new-money bonds since 2009. We've been reaffirmed by all three rating agencies with a stable rating, so we think there should be good demand out there."
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