Sacramento County’s Department of Airports is pleased to announce the successful sale of $469.12 million in General Airport Revenue Bonds (GARBs), marking a significant step in financing its ambitious $1.3 billion infrastructure improvement program at Sacramento International Airport (SMF) called SMForward. This issuance represents the first time in more than 12 years that Sacramento County Department of Airports (SCDA) has sought new outside investment for major capital projects.
The $469 million bond issuance will finance key components of the modernization program, including a new parking structure, a terminal pedestrian walkway and improved roadways. The bond issuance received strong investor interest, at four times oversubscribed, demonstrating the appeal of airport bonds in the municipal bond market. The deal was well received by investors, realizing an all-in true interest cost of 4.077%.
“This bond issuance is a major milestone for Sacramento International Airport,” said Director of Airports, Cindy Nichol. “It reflects investor confidence in our growth and our ability to deliver critical infrastructure that benefits both the community and travelers.”
SMF’s bond issuance not only supports airport growth but also offers a unique opportunity to take advantage of the municipal bond market. Airport bonds, particularly General Airport Revenue Bonds (GARBs), are a key financial instrument used across the U.S. to finance essential infrastructure, providing investors with secure returns while supporting the broader economy.
“The bond market provides a powerful mechanism to finance large-scale projects without burdening local taxpayers,” said Chris Wimsatt, Deputy Director of Finance for Sacramento County’s Department of Airports. “It allows us to keep up with the region’s development while maintaining fiscal responsibility.”
Bond Sale Highlights:
- Bond Type: General Airport Revenue Bonds (GARBs)
- Total Issuance: $469.12 million
- Investor Demand: Despite market challenges, the bond sale attracted significant interest from a wide range of investors, including insurance companies, pension funds, and mutual fund managers.
- True Interest Cost: The All-in True Interest Cost (TIC) was a competitive 4.077%, demonstrating SMF’s ability to secure favorable financing terms in a dynamic market.
