Citi and Credendo, Belgium’s export credit agency ( ECA ), have successfully closed the US$328 million financing for eight Airbus aircraft – six A321s and two A320s – for IndiGo, India’s largest airline by network and fleet size and one of the fastest-growing carriers in the world. Under the structure, Citi acted as sole mandated arranger, ECA coordinator and sole lender, with the financing backed by Credendo’s credit insurance.
Executed through IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC, the transaction marks the first-ever Credendo-insured aviation financing globally and the first ECA-backed aircraft financing through a GIFT IFSC ( Gujarat International Finance Tec-City International Financial Services Centre ) leasing structure, setting an important milestone in India in aviation finance.
The bespoke financing solution was jointly conceptualized, structured and developed by Citi and Credendo in close partnership with IndiGo and Airbus leveraging its expertise in ECA structuring and aviation finance, together with Credendo’s credit insurance capabilities to deliver a tailored funding solution that supports IndiGo’s ambitious fleet expansion plans through the GIFT IFSC platform.
Airbus played a key role in supporting this pioneering financing, working closely with Citi, Credendo and IndiGo throughout the process. The transaction further underscores Airbus’ commitment, it emphasizes, to developing innovative financing solutions that enhance funding access and support the growth ambitions of its airline customers.
This landmark transaction reflects the growing importance of access to innovative international capital and export credit support in meeting the financing needs of Indiai’s rapidly expanding aviation sector and reinforcing its position as a global aviation hub.
For IndiGo, the facility provides a competitive and diversified source of long-term funding for fleet and network growth. It also demonstrates the strong collaboration between Citi, Credendo, IndiGo and Airbus in delivering a first-of-its-kind financing and broadening the range of funding solutions available to the Indian aviation market.
“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,” adds K Balasubramanian, Citi’s India CEO and banking head and Indian subcontinent sub-cluster head. “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.”
