Citi and Belgium’s export credit agency Credendo have completed a US$328 million financing deal for eight Airbus aircraft operated by IndiGo, marking the first aviation financing insured by Credendo and the first export credit agency-backed aircraft financing arranged through Gujarat International Finance Tec-City (GIFT City).

The transaction, announced on 13 October 2026, covers six Airbus A321 aircraft and two A320 aircraft. It uses IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited, to arrange the funding through GIFT International Financial Services Centre (GIFT IFSC) in Gujarat.

The deal brings together an international bank, a European export credit agency, an Indian airline and an aircraft manufacturer. It also puts GIFT City’s aircraft leasing plans into practice, as India seeks a larger role in the global market for aircraft ownership, leasing and finance.

Citi acted as the sole mandated arranger, export credit agency coordinator and sole lender. Credendo provided credit insurance for the financing, helping manage the lender’s exposure to the risks covered by the policy.

For IndiGo, the funding offers another source of long-term finance for its Airbus fleet. For India’s aviation finance sector, the transaction shows how GIFT IFSC can bring international lenders and export credit agencies into aircraft financing arrangements.

GIFT City, located near Gandhinagar in Gujarat, was developed as an international financial centre where businesses can carry out financial transactions under a dedicated regulatory system. The International Financial Services Centres Authority (IFSCA) oversees financial services in the centre, including aircraft leasing.

The Indian government has introduced rules to help companies lease aircraft through GIFT IFSC. Aircraft leases were recognised as financial products in October 2020, followed by further rules covering operating leases and related activities. These measures are intended to make India a more attractive place for aircraft leasing and financing.

The Ministry of Civil Aviation reported in its 2025 annual report that, by 31 December 2025, 38 entities had registered to conduct aircraft leasing business through the IFSC. These entities had leased 370 aviation assets, including 196 aircraft, 89 engines and 85 pieces of ground support equipment. IndiGo had leased 74 narrow-body aircraft through the centre.

The latest financing deal adds another type of transaction to this activity. It combines bank lending with export credit insurance within a GIFT IFSC structure.

Credendo is Belgium’s official export credit agency. It provides insurance and financial support to help businesses and banks manage risks linked to international trade. Its work includes cover against certain commercial and political risks.

In this transaction, Credendo’s credit insurance supports the financing provided by Citi. Such insurance can protect a lender against specified losses if a borrower fails to meet its repayment obligations, subject to the terms of the policy.

Frank Vanwingh, Group Deputy CEO and Vice Chairman of the Executive Committee at Credendo, said: “This transaction is a significant milestone for Credendo and the first step in a broader initiative aimed at enhancing support for the Belgian aviation industry. As our inaugural aircraft finance transaction, it demonstrates our ambition to become a long-term partner for Belgian aviation stakeholders seeking access to international opportunities and innovative financing structures. The transaction also showcases the value that Belgian export credit support can bring to the aviation sector through bespoke risk mitigation solutions. We are proud to have worked alongside Airbus, Citi and IndiGo in delivering this landmark transaction through GIFT IFSC and look forward to supporting further aviation finance projects worldwide.”

The deal is Credendo’s first aircraft finance transaction. Its participation also marks the first time the agency has insured an aviation financing deal anywhere in the world.

Citi arranged and provided the entire loan facility. K Balasubramanian, India CEO and Banking Head and Indian Subcontinent Sub-Cluster Head at Citi, said: “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. By combining Citi’s cross-border aviation and ECA financing expertise with Credendo’s credit insurance and IndiGo’s GIFT IFSC platform, we have delivered a first-of-its-kind solution that opens a vital new pathway connecting Indian aviation with the deep pool of ECA-backed international liquidity and supports the next phase of India’s aviation growth. Citi is proud to have led this landmark facility as Sole Mandated Lead Arranger, ECA Coordinator and Sole Lender. We also thank Airbus for its partnership and support in making this transaction possible.”

Airbus worked with Citi, Credendo and IndiGo during the development of the financing arrangement. The manufacturer said the transaction reflects its efforts to develop funding options for airline customers.

For IndiGo, the money will support its growing Airbus fleet and provide another source of long-term funding. Riyaz Peermohamed, Chief Aircraft Acquisition & Financing Officer at IndiGo, said: “We are pleased to partner with Citi, Credendo and Airbus on this landmark financing, which offers IndiGo a competitive source of liquidity for our growing Airbus fleet. The transaction demonstrates the potential of GIFT IFSC to bring together international banks and export credit agencies and create innovative financing solutions for Indian aviation.”

Aircraft require large amounts of capital, and airlines must plan how to pay for them over many years. Leasing allows airlines to use aircraft without having to purchase every plane directly. The choice between buying and leasing depends on the airline’s financial position, fleet plans and contractual terms.

For India, the ability to arrange more of these transactions through GIFT City could help attract international financial institutions and expand local expertise in aircraft finance. The government has also taken steps to strengthen legal protections for aircraft financiers. The Protection of Interest in Aircraft Objects Act, which came into force in 2025, was intended to bring Indian law closer to international standards for aircraft leasing and financing.

The US$328 million arrangement sets a new precedent for Credendo and ECA-backed aircraft financing through GIFT IFSC. Whether it leads to more such deals will depend on future transactions, financing terms and the willingness of lenders and insurers to participate.

For IndiGo, the immediate outcome is additional funding for eight Airbus aircraft. For GIFT City, the deal adds another example of how its financial services framework can serve the needs of India’s expanding airline industry.

Must Read:

IndiGo BluChips Now Reward Duty-Free Airport Shopping

Mundra Airport Starts Flights to 8 Cities