India’s largest airline will use the financing to acquire six A321s and two A320s, in a transaction insured by Belgian export credit agency Credendo and structured through GIFT IFSC.
IndiGo has signed a $328 million aircraft financing agreement with global banking major Citi to finance the acquisition of eight new narrowbody aircraft from Airbus. The transaction marks the world’s first aviation financing deal insured by Belgian export credit agency (ECA) Credendo and the first ECA-backed aircraft financing structured through Gujarat International Finance Tec-City’s International Financial Services Centre (GIFT IFSC), according to a statement.
The financing will support IndiGo’s acquisition of six Airbus A321s and two A320s, adding to the airline’s expanding Airbus fleet. The agreement provides the carrier with a competitive and diversified source of long-term funding to support its fleet expansion and network growth.
Citi leads financing structure with Credendo support
Citi acted as the sole mandated arranger, ECA coordinator, and sole lender for the transaction, which is backed by Credendo’s credit insurance. The financing was executed through IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC.
The structure combines Citi’s cross-border aviation financing expertise with Credendo’s credit insurance and IndiGo’s GIFT IFSC platform, connecting the airline with international export credit agency-backed funding.
K Balasubramanian, Chief Executive Officer of Citi India, said the transaction demonstrates how international banking expertise, export credit insurance and the GIFT IFSC platform can create new financing pathways for Indian aviation.
Frank Vanwingh, Group Deputy CEO of Credendo, said the agency aims to become a long-term partner for Belgian aviation stakeholders seeking international opportunities through innovative financing structures.
IndiGo expands funding options for fleet growth
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 growing Airbus fleet.
The transaction also highlights the role of GIFT IFSC in bringing international banks and export credit agencies together to develop financing solutions for India’s aviation sector.
Supporting IndiGo’s long-term fleet expansion
IndiGo has an extensive Airbus narrowbody fleet expansion programme. In 2023, the airline announced an order for 500 aircraft from the Airbus A320 family and also committed to adding the widebody Airbus A350 to its fleet.
The latest financing agreement provides another funding route for the airline’s narrowbody aircraft acquisitions as it continues to expand its fleet and network.
For the aviation industry, the transaction highlights the growing role of export credit-backed financing and international financial centres in structuring aircraft acquisitions. By bringing together an airline, an international lender and an export credit agency through GIFT IFSC, the deal establishes a new financing structure for Indian aviation.
