IndiGo signs $328 million Citi financing deal for eight Airbus aircraft with Credendo backing

Mumbai: Country's largest carrier Indigo has signed a USD 328 million financing deal with Citi to buy eight narrow-body planes to be manufactured by Airbus.This is the world's first aviation financing transaction insured by the Belgian export credit agency (ECA) Credendo, and the maiden ECA-backed aircraft financing structured through the GIFT IFSC, according to a statement.The financing will help Indigo procure six A321s and two A320s, it said.Global banking major Citi acted as sole mandated arranger, ECA coordinator and sole lender, with the financing backed by Credendo's credit insurance, it added.Also read: SC stays trial court proceedings in defamation case against Rahul Gandhi over Modi remarksThe transaction was executed through Indigo's subsidiary, InterGlobe Aviation Financial Services IFSC and provides a "competitive and diversified source of long-term funding" for the carrier's fleet and network growth, it 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," Citi India's chief executive K Balasubramanian said.Frank Vanwingh, the group deputy CEO for Credendo, said the ECA aspires to become a long-term partner for Belgian aviation stakeholders seeking access to international opportunities and innovative financing structures.Indigo's chief aircraft acquisition and financing officer Riyaz Peermohamed said the partnership with Citi, Credendo and Airbus offers a competitive source of liquidity for its growing Airbus fleet.Also read: MPSC row: Government action against chairperson marks major win for Maharashtra student protests"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.In 2023, Indigo announced an order to buy 500 narrow-body aircraft from the A320 family from Airbus and also committed to adding the widebody Airbus A350 to its fleet.

Transaction marks first Credendo-insured aviation financing globally and first ECA-backed deal through GIFT IFSC structure

Under the structure, Citi acted as Sole Mandated Arranger, ECA Coordinator and Sole Lender, with the financing backed by Credendo's credit insurance.