Group sells US$2.4b bonds to fund New York airport expansion

New York

NEW York is about to find out whether it's possible to build a 35-gate terminal at the LaGuardia Airport around the existing one without disrupting operations or becoming plagued by cost overruns and delays.

To finance construction at the airport in Queens, a group created by Swedish construction company Skanska AB, Canadian airport operator Vantage Airport Group and France's Meridiam sold US$2.4 billion of debt on Tuesday in the biggest offering of municipal bonds since March. The group, which has put up US$200 million in equity for the US$4 billion project, has guaranteed it will be finished on-budget in six years.