IndiGo has signed a $328 million financing agreement with Citi to acquire eight Airbus narrow-body aircraft, using a structure that the airline and bank described as the first aviation financing transaction insured by Belgian export credit agency Credendo and the first ECA-backed aircraft financing arranged through GIFT IFSC.
The financing will support the purchase of six Airbus A321 aircraft and two A320 aircraft, according to a statement. Citi acted as the sole mandated arranger, ECA coordinator and lender, while Credendo provided credit insurance for the transaction.
The deal was executed through IndiGo subsidiary InterGlobe Aviation Financial Services IFSC. The airline said the structure would provide a competitive and diversified source of long-term funding for its fleet and network expansion.
The transaction places GIFT IFSC at the centre of an international aircraft financing arrangement involving an Indian airline, a global bank, a European export credit agency and Airbus. Export credit agencies typically support eligible cross-border purchases by providing insurance or guarantees that can help lenders finance large capital acquisitions. In this case, the financing is tied to Airbus aircraft being manufactured for IndiGo.
K Balasubramanian, Citi India’s chief executive, said the arrangement combined Citi’s cross-border aviation and export credit financing expertise with Credendo’s credit insurance and IndiGo’s GIFT IFSC platform. He described it as a new pathway connecting Indian aviation with international export credit-backed liquidity.
Frank Vanwingh, Credendo’s group deputy chief executive, said the agency aimed to become a long-term partner for Belgian aviation stakeholders seeking international opportunities and innovative financing structures.
Riyaz Peermohamed, IndiGo’s chief aircraft acquisition and financing officer, said the partnership with Citi, Credendo and Airbus offered a competitive source of liquidity for the airline’s expanding Airbus fleet. He added that the transaction demonstrated the potential of GIFT IFSC to bring international banks and export credit agencies together for aviation financing.
The aircraft financing comes as IndiGo continues to implement a major fleet expansion plan. In 2023, the airline announced an order for 500 narrow-body aircraft from Airbus’ A320 family and also committed to adding the wide-body Airbus A350 to its fleet. The latest agreement covers eight aircraft from the narrow-body A320 family and does not represent the full 2023 order.
For Indian aviation, the transaction provides a new financing route for aircraft acquisition through the country’s international financial services centre. The immediate next step is the procurement and manufacture of the six A321s and two A320s covered by the agreement.
