World’s First Credendo-Insured Aircraft Financing Through GIFT IFSC
Bilkul Bazaar
: Citi and Credendo, Belgium’s export credit agency, have completed a $328 million financing facility for eight Airbus aircraft acquired by IndiGo, comprising six A321s and two A320s. The transaction marks a major milestone in India’s efforts to establish itself as a global aircraft leasing hub through Gujarat International Finance Tec-City (GIFT City).
The financing is the world’s first aviation financing insured by Credendo and the first export credit agency (ECA)-backed aircraft financing structured through GIFT IFSC. The transaction was executed through IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited.
Citi acted as the Sole Mandated Arranger, ECA Coordinator and Sole Lender, with Credendo providing credit insurance. The financing structure was jointly developed by Citi and Credendo in partnership with IndiGo and Airbus to support the airline’s fleet expansion plans.
The facility provides IndiGo with a competitive and diversified source of long-term funding for its growing fleet and network. It also demonstrates how international banks, export credit agencies and aviation companies can collaborate to develop innovative financing solutions for India’s expanding aviation sector.
K Balasubramanian, India CEO and Banking Head and Indian Subcontinent Sub-Cluster Head at Citi, said the transaction reflected the Government of India’s vision of making aircraft leasing through GIFT City a policy priority. He added that the financing creates a new channel for Indian aviation to access international liquidity backed by export credit agencies.
Frank Vanwingh, Group Deputy CEO and Vice Chairman of the Executive Committee at Credendo, described the transaction as a significant milestone for the agency and its first aircraft financing deal. He said it represented the beginning of a broader initiative to support the Belgian aviation industry and help its stakeholders access international opportunities.
Riyaz Peermohamed, Chief Aircraft Acquisition and Financing Officer at IndiGo, said the financing would provide competitive liquidity for the airline’s expanding Airbus fleet. He also highlighted GIFT IFSC’s potential to bring international banks and export credit agencies together to develop new financing solutions for Indian aviation.
The transaction strengthens GIFT IFSC’s role in aviation finance and supports India’s ambition to emerge as a leading international centre for aircraft leasing.