Citi and Credendo closed a $328 million deal to finance eight Airbus jets for IndiGo. Citigroup said on Tuesday that this is the first Credendo-insured aviation financing through GIFT City. The deal covers six A321 and two A320 aircraft, helping the airline expand its fleet using this new funding structure.

Summary

The financing covers six Airbus A321 and two A320. Citi acted as the sole mandated arranger, ECA coordinator and sole lender, while Credendo provided credit insurance.

American investment bank Citigroup and Belgian export credit agency Credendo, a European credit insurer, have completed a $328 million financing deal for eight Airbus aircraft for India's budget carrier IndiGo, marking two milestones in global aviation finance.

The transaction is the world's first-ever Credendo-insured aviation financing and the first export credit agency (ECA)-backed aircraft financing through GIFT City's International Financial Services Centre (IFSC) leasing structure, Citigroup said in a statement on Tuesday.

The financing covers six Airbus A321 and two A320. Citi acted as the sole mandated arranger, ECA coordinator and sole lender, while Credendo provided credit insurance. The transaction was executed through IndiGo's subsidiary, InterGlobe Aviation Financial Services IFSC Pvt. Ltd.

The financing solution was jointly developed by Citi and Credendo in partnership with IndiGo and Airbus. It aims to support IndiGo's fleet expansion plans by providing access to long-term funding through GIFT City.

"The Government of India has made aircraft leasing through GIFT City a clear policy priority, and the incentives introduced have helped position India as an attractive destination for aircraft leasing. This transaction is a strong example of that vision in action," K. Balasubramanian, India chief executive and banking head and Indian subcontinent sub-cluster head at Citi, said.

Aircraft leasing

This transaction reflects the growing importance of access to innovative international capital and export credit support in meeting the financing needs of India's rapidly expanding aviation sector and reinforcing its position as a global aviation hub, the statement said.

For IndiGo, the facility provides a competitive and diversified source of long-term funding for fleet and network growth. The transaction demonstrates GIFT IFSC's potential to bring international banks and export credit agencies together to develop innovative financing solutions for Indian aviation, Riyaz Peermohamed, chief aircraft acquisition and financing officer at IndiGo, said.

The deal also reinforces GIFT IFSC's role in developing India as a global aircraft leasing hub while broadening the funding options available to the country's aviation industry.

Aircraft leasing is a capital-intensive business in which lessors typically acquire aircraft and lease them to airlines. GIFT City's aircraft-leasing ecosystem attracts some of India's biggest business and airline groups. The Adani Group has set up aircraft-leasing vehicles in the IFSC, while the Tata Group's Air India and IndiGo have established GIFT City entities to finance and lease aircraft. Akasa Air has also set up an IFSC leasing arm as it expands its fleet.

Latest reports suggest that the Aditya Birla Group is looking into the same.

As of June 2026, 37 aircraft-leasing entities were operating from the IFSC, with a combined portfolio of 412 aviation assets, including 237 aircraft, 87 engines and 85 auxiliary power units (APUs), according to the IFSCA's April-June Bulletin. Financing extended by International Banking Units to aircraft-leasing entities stood at $664.77 million at the end of June 2026, compared with $234.6 million a year ago.