Citi and Belgian export-credit agency Credendo have closed a $328 million financing facility for eight Airbus narrow-body aircraft for IndiGo. The transaction covers six A321s and two A320s to be manufactured by Airbus, providing the Indian airline with long-term funding for fleet expansion and network growth through a structure arranged via GIFT International Financial Services Centre (GIFT IFSC).
Citi acted as sole mandated arranger, export-credit-agency coordinator and sole lender, while Credendo provided credit-insurance backing. The transaction was executed through IndiGo subsidiary InterGlobe Aviation Financial Services IFSC Private Limited, in partnership with Airbus and the airline.
The deal is described as the first Credendo-insured aviation financing globally and the first export-credit-agency-backed aircraft financing arranged through a GIFT IFSC leasing structure. It combines export-credit insurance with India’s financial-services platform and could broaden funding options for future aircraft acquisitions by Indian carriers.
The financing supports IndiGo’s wider fleet expansion. The airline placed an order for 500 A320-family aircraft with Airbus in 2023 and has also committed to adding the A350. IndiGo expects to have nine to 10 A321XLRs by the end of March 2027, compared with four at the time of the announcement, for deployment on medium-haul international routes.