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The Salt Lake City Department of Airports announced the sale of $1 billion in revenue bonds, proceeds of which will go toward the $2.9 billion airport reconstruction and expansion.

Airport officials said in a statement that strong demand and investor confidence resulted in the 30-year bonds being sold at rates below 3.8 percent.

"We are pleased with the strong response," said Ryan Tesch, SLCDA director of finance. "It is rare to have the chance to commence a major financing program with a completely clean slate, but that's what we did and the market clearly responded very favorably."

Tesch referred to the fact the airport paid off its last bond issue in 2008 and, until Wednesday's sale, was the largest U.S. airport with no outstanding debt.

The $1 billion will go to the reconstruction project that includes a new terminal, two concourses and a parking garage. The first phase is expected to be completed in 2020, with the second phase targeted for a 2023-24 completion.

Funding sources include passenger facility charges, rental-car facility charges, federal grants and cash.

Salt Lake City International Airport is the 25th busiest in North America, with more than 330 flights daily to 91 nonstop destinations.