New Delhi, Oct 2026 : IndiGo, India’s largest airline, has signed a $328 million financing agreement with global banking major Citi to acquire eight Airbus aircraft, marking the world’s first aviation financing transaction insured by Belgian export credit agency Credendo.
The transaction is also the first export credit agency (ECA)-backed aircraft financing deal structured through the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City), according to a statement.
The financing will support IndiGo’s acquisition of six Airbus A321 aircraft and two A320 aircraft, strengthening its fleet expansion plans. Citi acted as the sole mandated arranger, ECA 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. The arrangement provides the airline with a competitive and diversified source of long-term financing as it expands its fleet and broadens its domestic and international network.
Citi India Chief Executive K Balasubramanian said the transaction brought together the bank’s expertise in cross-border aviation and export credit financing, Credendo’s credit insurance capabilities and IndiGo’s GIFT IFSC platform to establish a new financing route for India’s aviation sector.
He said the arrangement would connect the industry with international funding supported by export credit agencies and help meet the financing requirements arising from the next phase of growth in Indian aviation.
Credendo Group Deputy Chief Executive Frank Vanwingh said the agency sought to establish itself as a long-term partner for Belgian aviation stakeholders pursuing international business opportunities and innovative financing structures.
He added that the transaction represented an opportunity to support cross-border aviation financing through a new international platform.
IndiGo’s Chief Aircraft Acquisition and Financing Officer Riyaz Peermohamed said the partnership with Citi, Credendo and Airbus would provide the airline with a competitive source of liquidity to support the expansion of its Airbus fleet.
He also highlighted the potential of GIFT IFSC to bring international banks and export credit agencies together to develop financing solutions tailored to the requirements of Indian aviation companies.
The transaction comes as IndiGo continues to pursue an ambitious fleet expansion strategy. In 2023, the airline announced an order for 500 narrow-body aircraft from Airbus’ A320 family, one of the largest aircraft orders in commercial aviation history.
IndiGo has also committed to introducing the wide-body Airbus A350 into its fleet as it looks to expand its international operations and serve more long-haul routes.
The latest financing agreement highlights the growing role of GIFT IFSC in facilitating international financial transactions and providing Indian companies with access to global funding mechanisms.
For IndiGo, the arrangement offers another financing channel to support aircraft acquisitions, while the involvement of Citi and Credendo demonstrates how international banking institutions and export credit agencies can collaborate to finance large-scale aviation investments.
