Citi and Credendo fund IndiGo's aircraft purchase

Citi and the Belgian export credit agency Credendo have finalized a $328 million financing deal to support IndiGo's acquisition of eight new Airbus single-aisle aircraft. This transaction is part of a larger effort to expand IndiGo’s fleet and meet growing demand for air travel in India.

Details of the aircraft order

The deal specifically covers six Airbus A321neo and two Airbus A320neo aircraft. These models are part of Airbus’s popular A320neo family, known for improved fuel efficiency and passenger comfort compared to older models.

Citi's role in the transaction

Citi acted as the sole mandated arranger, coordinator with the export credit agency, and sole lender in the transaction. Credendo provided credit insurance, which helps reduce financial risk for the lenders involved.

Financing through a subsidiary

The operation was carried out through InterGlobe Aviation Financial Services IFSC Private Limited, a subsidiary of IndiGo, in partnership with Airbus. This structure is common in large aviation financing deals to manage financial obligations and regulatory requirements.

IndiGo's broader aircraft orders

IndiGo has placed a significant order with Airbus, including 500 new A320neo family aircraft ordered in 2023, in addition to 300 ordered in 2019. About forty of these single-aisle aircraft are the longer-range A321XLR variant. IndiGo is also expecting to receive 60 wide-body A330-900 aircraft, which are designed for longer-haul flights.