The Massachusetts Port Authority is tapping the municipal bond market to upgrade the region's largest airport.
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Massport plans to borrow $812M this week for Logan International Airport upgrades, with Bank of America and Loop Capital Markets leading the bond sale, Bloomberg reported.
The money would go toward ongoing renovations of Terminal E — Logan's international terminal — plus a new parking garage and improvements to roadways and baggage handling systems.
The spending is part of the $4.1B, five-year capital plan that Massport's board approved in February. The authority also oversees Worcester Regional Airport and Boston's maritime ports, but $3.3B of that total would go toward Logan.
In September, Skanska began construction on the international terminal renovations, a $700M project that includes a new 4,000-space parking garage, a new pedestal bridge and a ride-sharing pickup and drop-off area, the Boston Business Journal reported at the time.
Logan served 43.2 million passengers last year, surpassing pre-pandemic levels. That included a record 10 million international travelers, a 3.2% increase from the prior year, according to Massport. A Massport spokesperson told Bloomberg the renovations are an effort to compete with other airports.
“Passengers have a choice and we want our passengers to choose to travel in and out of Logan,” Massport Director of Media Relations Jennifer Mehigan told the publication.
U.S. airports have increasingly been using municipal bonds to fund large-scale renovation projects. Airports sold nearly $24B in debt last year, Bloomberg reported, an annual record and a 12% increase from 2024. Airports have borrowed roughly $8B so far this year, including a $1.3B deal from the Metropolitan Nashville Airport Authority.
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