The Metropolitan Washington Airports Authority is gearing up to bring $829.4 million of airport system revenue and refunding bonds to the market. This strategic move comes as part of their yearly plan to either take advantage of refunding opportunities or meet new money requirements. Senior Vice President for Finance and CFO, Andrew Rountree, highlighted that the refunding portion amounts to approximately $400 million, while the new money issuance stands at about $429 million. The fresh funds are earmarked to contribute to the continuous capital construction program being undertaken by the authority.
The upcoming bond sale is set to be managed by BofA Securities, Inc., with Frasca & Associates as the municipal advisor and Squire Patton Briggs serving as the bond counsel. This strategic collaboration aims to structure tax-exempt bonds with interest subjected to the alternative minimum tax. Moreover, the interest will also be tax-exempt in both the District of Columbia and Virginia, further solidifying the financial foundation of the Metropolitan Washington Airports Authority.
The Metropolitan Washington Airports Authority boasts an airport system comprising Ronald Reagan National Airport, Washington Dulles International Airport, and the Dulles Toll Road. This system played a pivotal role in funding the extension of the Metrorail’s Silver Line to the Dulles airport, showcasing a commitment to infrastructure development. Additionally, the authority has witnessed a significant rebound in both traffic and revenue post-pandemic years, with operating revenues seeing a notable increase from $766 million in 2019 to $853 million in 2023.
Through the Airport Infrastructure Grants program, the two airports under the authority’s purview have received substantial financial support. Reagan National and Dulles International have been awarded grants totaling $66.7 million and $67.7 million, respectively. These funds are being utilized for critical projects like building a new East Concourse at Dulles and enhancing Terminal Two at Reagan. Moreover, the authority is set to invest in runway improvements and expansion works, further fortifying its infrastructure for future growth.
Prior to the bond sale, the Metropolitan Washington Airports Authority received rating affirmations from leading agencies. Moody’s Investors Service rates the authority’s revenue bonds at Aa3, while S&P Global Ratings and Fitch Ratings both assign AA-minus ratings. These ratings are underpinned by strong credit attributes, a balanced carrier mix, and a stable financial profile. Notably, Moody’s highlights the authority’s debt service coverage ratio of 2.77 in 2023, signaling robust financial health despite the capital investment plans.
In addition to financial prowess, the Metropolitan Washington Airports Authority is actively pursuing sustainability initiatives. Efforts to achieve a LEED Silver rating for the East Concourse at Dulles reflect a commitment to environmental consciousness. Plans for a 100-megawatt solar farm near Dulles and the implementation of EV charging infrastructure underscore a holistic approach towards energy efficiency and reduced environmental impact. These initiatives complement the authority’s broader objective of fostering a greener and more sustainable aviation ecosystem.
Overall, the Metropolitan Washington Airports Authority’s forthcoming bond sale represents a strategic move towards furthering infrastructure development, enhancing financial stability, and fostering sustainable growth. As the authority continues to invest in critical projects and adopt environmentally friendly practices, it positions itself as a key player in the aviation industry‘s evolution towards a more sustainable future.