ST. JOHN’S, NL, 2014-7-22 — /Travel PR News/ — St. John’s International Airport Authority announced today it has closed a $60 million privately-placed bond issue with institutional investors across Canada. The bonds will bear interest at 3.479% per annum and will mature in 10 years. The bond issue was placed by the SJIAA’s agent CIBC World Markets and is rated A1 by Moody’s.
The net proceeds from the sale of this series of bonds will be used to fund the Debt Service Reserve Fund and to provide long-term financing for the Authority’s 10-Year Infrastructure Improvement Plan. Specifically, these funds will be used to finance the costs associated with the following:
- preparation of the airfield to support the installation of a Category III instrument landing system that will increase the accessibility of the Airport during low-visibility conditions
- the expansion of the Airport Terminal Building, parking lots and roadways to support the unprecedented growth in passenger traffic and the anticipated 2 million passengers by 2023
- investments in the Airport’s infrastructure that will ensure the safety and operational integrity of the existing facilities
Income to support these capital expenditures, and the principal and interest of the bonds will be obtained primarily through the Airport Improvement Fee (AIF).
St. John’s International Airport Authority is a private, not-for-profit organization with the mandate to provide the region with a safe, cost-efficient transportation facility that is a catalyst for economic growth. Under the provisions of a long-term Ground Lease with the Federal Government of Canada, the Airport Authority is responsible for the airport’s operations on behalf of the community it serves.
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