The City of Philadelphia’s Department of Aviation completed the sale of its Series 2025A and 2025B Airport Revenue and Refunding Bonds totaling approximately $365 million. The sale was completed on August 14, 2025.

“This new bond issue will allow us to proceed with the next stage of planned improvements at Philadelphia International Airport [PHL], especially as we prepare for the events coming to the Greater Philadelphia region in 2026,” said Department of Aviation CEO Atif Saeed. “PHL is the first stop for many of our region’s visitors. The investment in our capital plan will ensure we maintain our role as a first-class airport for travelers."

Proceeds from the financing were used to take out over $321 million in commercial paper that previously funded some of PHL’s capital projects, along with refunding almost $60 million in existing debt (Series 2015A bonds), generating $3.1 million in present value savings (5.2 percent of refunded par) and creating gross debt service savings of $6.9 million.

This refunding also allowed for 100 percent bondholder consent of the airport’s more modern Debt Service Reserve Fund calculation, resulting in a release of over $20 million used to offset debt service costs and pay down existing commercial paper.

The banking syndicate was led by Wells Fargo and Ramirez, and the co-managers were Loop and PNC.

The 2025 Bonds received favorable interest rates, resulting in a true interest cost of 4.91 percent, due in part to the strength of the airport’s underlying bond ratings. In the past two years, three of the world’s leading financial rating agencies – Fitch, Moody’s and Standard & Poor’s (S&P) – upgraded the bond ratings for the airport to A+, A1, and A+ respectively. Each of the rating agencies cited the airport’s improved competitive position, increased control of airport facilities, improved liquidity, and the region’s strong originating passenger base.