IndiGo has signed a $328 million Airbus financing deal with Citi to acquire eight new aircraft. The planes will be manufactured by Airbus and include six A321s and two A320s. The transaction marks a global first in aviation financing and introduces a new funding route for Indian airlines through GIFT IFSC.

According to a statement, the deal is the world's first aviation financing transaction insured by Belgian export credit agency (ECA) Credendo. It is also the first ECA-backed aircraft financing deal structured through Gujarat International Finance Tec-City's International Financial Services Centre (GIFT IFSC).

The Airbus financing deal will provide IndiGo with a competitive, diversified source of long-term funding to support its fleet expansion and network growth.

Key Highlights

• IndiGo secured $328 million in financing to acquire eight Airbus aircraft.
• Credendo provided credit insurance, marking a global first for aviation financing.
• The transaction is the first ECA-backed aircraft financing deal structured through GIFT IFSC.

How Citi and Credendo Structured the Airbus Financing Deal

Global banking major Citi acted as the sole mandated arranger, ECA coordinator, and lender for the transaction. Credendo backed the financing through its credit insurance, helping create a new structure for international aircraft funding.

The transaction was executed through IndiGo's subsidiary, InterGlobe Aviation Financial Services IFSC. The arrangement brings together international banking expertise, export credit insurance, and India's international financial services platform.

K Balasubramanian, Chief Executive of Citi India, said the transaction combines Citi's cross-border aviation and export credit financing expertise with Credendo's credit insurance and IndiGo's GIFT IFSC platform.

He added that the arrangement creates a new route connecting Indian aviation with international ECA-backed funding. It is also expected to support the next phase of growth in India's aviation sector.

Frank Vanwingh, Group Deputy CEO of Credendo, said the agency aims to become a long-term partner for Belgian aviation stakeholders seeking international opportunities and innovative financing structures.

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What the Deal Means for IndiGo's Fleet Expansion

Riyaz Peermohamed, IndiGo's chief aircraft acquisition and financing officer, said the partnership with Citi, Credendo, and Airbus offers a competitive source of liquidity for the airline's growing Airbus fleet. He also highlighted the potential of GIFT IFSC to bring international banks and export credit agencies together to develop new financing solutions for Indian aviation.

The deal comes as IndiGo continues to expand its aircraft fleet. In 2023, the airline announced an order for 500 narrow-body aircraft from Airbus' A320 family. It also committed to adding the widebody Airbus A350 to its fleet.

The latest Airbus financing deal adds another funding route as the airline works to support its aircraft requirements and broader network expansion.

The transaction also highlights GIFT IFSC's role in connecting Indian aviation companies with international lenders and export credit agencies. If similar structures gain wider use, they could offer airlines another option for securing long-term aircraft financing.