IndiGo has signed a USD 328 million financing agreement with global banking major Citi to acquire eight narrow-body aircraft from Airbus. The transaction, backed by credit insurance from Belgian export credit agency Credendo, marks the first aviation financing deal insured by the agency and the first export credit agency (ECA)-backed aircraft financing structured through GIFT International Financial Services Centre (GIFT IFSC), according to the companies’ statement.
The financing will support IndiGo’s acquisition of six Airbus A321 aircraft and two A320 aircraft. Executed through the airline’s subsidiary, InterGlobe Aviation Financial Services IFSC, the transaction provides a diversified source of long-term funding for its fleet expansion and network growth.
Citi Arranges Financing Backed by Credendo
Citi acted as the sole mandated arranger, ECA coordinator and sole lender for the transaction. Credendo provided credit insurance backing for the financing, enabling the structure to combine international banking expertise with export credit support.
The deal establishes a new financing route for Indian aviation through GIFT IFSC, connecting the sector with international liquidity backed by export credit agencies. It also expands the range of funding structures available to airlines acquiring aircraft.
K Balasubramanian, Chief Executive Officer of Citi India, said,
“By combining Citi’s cross-border aviation and ECA financing expertise with Credendo’s credit insurance and IndiGo’s GIFT IFSC platform, we have delivered a first-of-its-kind solution that opens a vital new pathway connecting Indian aviation with the deep pool of ECA-backed international liquidity and supports the next phase of India’s aviation growth.”
Credendo Highlights International Financing Opportunities
Frank Vanwingh, Group Deputy CEO of Credendo, said the agency aims to become a long-term partner for Belgian aviation stakeholders seeking access to international opportunities and innovative financing structures.
The transaction marks Credendo’s entry into this aviation financing structure, with its credit insurance supporting the acquisition of Airbus aircraft by IndiGo. The arrangement also demonstrates how export credit agencies can participate in cross-border financing transactions involving Indian aviation companies.
IndiGo Uses GIFT IFSC for Fleet Financing
Riyaz Peermohamed, IndiGo’s Chief Aircraft Acquisition and Financing Officer, said the partnership with Citi, Credendo and Airbus provides a competitive source of liquidity for the airline’s expanding Airbus fleet.
“The transaction demonstrates the potential of GIFT IFSC to bring together international banks and export credit agencies and create innovative financing solutions for Indian aviation,” Peermohamed added.
The financing was executed through InterGlobe Aviation Financial Services IFSC, IndiGo’s subsidiary operating through GIFT IFSC. The structure is intended to diversify the airline’s funding sources as it continues to expand its fleet and network.
IndiGo Continues Airbus Fleet Expansion
In 2023, IndiGo announced an order for 500 narrow-body aircraft from Airbus’s A320 family. The airline also committed to adding the wide-body Airbus A350 to its fleet.
The latest financing arrangement supports the acquisition of eight additional narrow-body aircraft, comprising six A321s and two A320s. It also highlights the role of GIFT IFSC in facilitating international aircraft financing for Indian airlines as fleet requirements grow.
