Citi and Credendo have finalised a US$328 million financing agreement covering eight Airbus aircraft for IndiGo, comprising six A321s and two A320s. Citi served as Sole Mandated Arranger, ECA Coordinator and Sole Lender for the transaction, which is supported by credit insurance provided by Credendo.
Arranged through IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited, the transaction represents the first aviation financing worldwide to be insured by Credendo. It also marks the first export credit agency (ECA)-backed aircraft financing completed under a GIFT IFSC leasing structure, establishing a significant milestone for India’s aviation finance sector.
The transaction highlights the increasing role of innovative international financing and export credit support in meeting the funding requirements of India’s rapidly growing aviation industry, while strengthening the country’s position as a global aviation hub.
K Balasubramanian, India CEO and Banking Head and Indian Subcontinent Sub-Cluster Head, Citi, commented: “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.”
Frank Vanwingh, Group Deputy CEO, Vice Chairman of the Executive Committee, Credendo Export Credit Agency stated: “This transaction is a significant milestone for
Credendo and the first step in a broader initiative aimed at enhancing support for the Belgian aviation industry. As our inaugural aircraft finance transaction, it demonstrates our ambition to become a long-term partner for Belgian aviation stakeholders seeking access to international opportunities and innovative financing structures. The transaction also showcases the value that Belgian export credit support can bring to the aviation sector through bespoke risk mitigation solutions.”
