IndiGo has signed a $328 million financing agreement with global banking major Citi to fund the purchase of eight Airbus aircraft, strengthening its fleet expansion plans. The transaction, backed by credit insurance from Belgian export credit agency Credendo, marks a milestone for India’s aviation financing sector and the aircraft leasing ecosystem at GIFT City.
The financing covers six Airbus A321 aircraft and two A320 aircraft. Citi acted as the sole mandated arranger, export credit agency coordinator and lender, while Credendo provided credit insurance to support the transaction.
The deal was executed through IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited, using the aircraft leasing framework at GIFT City’s International Financial Services Centre (IFSC).
According to the companies, this is the world’s first aviation financing transaction insured by Credendo and the first export credit agency-backed aircraft financing structured through a GIFT IFSC leasing arrangement.
GIFT City Strengthens Its Role in Aviation Finance
The transaction highlights GIFT City’s growing role in connecting Indian airlines with international banks and export credit agencies. The framework offers airlines another route to access long-term funding for aircraft acquisition and fleet expansion.
Citi said the arrangement combines its cross-border aviation financing expertise with Credendo’s credit insurance capabilities and IndiGo’s GIFT IFSC platform. The structure is intended to broaden access to international capital for India’s expanding aviation industry.
For IndiGo, the financing provides a diversified source of long-term funding to support its fleet and network growth. Riyaz Peermohamed, the airline’s chief aircraft acquisition and financing officer, said the transaction demonstrates how GIFT IFSC can bring international banks and export credit agencies together to develop financing solutions for Indian aviation.
IndiGo Continues Fleet Expansion
The financing comes as IndiGo continues to expand its aircraft fleet and network. In 2023, the airline announced an order for 500 narrow-body aircraft from Airbus’ A320 family and also committed to adding the wide-body Airbus A350 to its fleet.
The latest agreement adds another funding channel to support aircraft acquisition. It also demonstrates the potential of GIFT IFSC to develop as an international hub for aircraft leasing and aviation finance, as Indian airlines seek capital to meet rising travel demand.
For India’s aviation sector, the transaction could help strengthen links between domestic airlines, international lenders and export credit agencies, while expanding the financing options available for future fleet investments.
