Landmark deal covers eight Airbus aircraft and marks the first Credendo-insured aviation financing globally and the first ECA-backed aircraft financing through GIFT IFSC.
Citi and Credendo, Belgium’s export credit agency, have closed a USD 328 million financing facility for eight Airbus aircraft for IndiGo, comprising six A321s and two A320s. Citi acted as Sole Mandated Arranger, ECA Coordinator and Sole Lender, with Credendo providing credit insurance.
Executed through IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited, the transaction marks a first for global aviation financing and establishes a new milestone for aircraft leasing through GIFT IFSC.
K Balasubramanian, India CEO and Banking Head and Indian Subcontinent Sub-Cluster Head, Citi, said, “The Government of India has made aircraft leasing through GIFT City a clear policy priority, and the incentives introduced have helped position India as an attractive destination for aircraft leasing. This transaction is a strong example of that vision in action. 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. Citi is proud to have led this landmark facility as Sole Mandated Lead Arranger, ECA Coordinator and Sole Lender. We also thank Airbus for its partnership and support in making this transaction possible.”
Frank Vanwingh, Group Deputy CEO and Vice Chairman of the Executive Committee, Credendo, said the transaction marks the agency’s first aircraft financing deal and a step towards supporting Belgian aviation stakeholders through innovative financing structures.
Riyaz Peermohamed, Chief Aircraft Acquisition & Financing Officer, IndiGo, said, “We are pleased to partner with Citi, Credendo and Airbus on this landmark financing, which offers IndiGo a competitive source of liquidity for our growing 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.”
