IndiGo has closed the financing of three A320 family aircraft via Gift City, according to a person familiar with the matter. The airline is set to close four Gift City financing for the aircraft, with the fourth due to close later in February.
BNP Paribas acted as lenders, with Clifford Chance advising the bank.
Indigo had closed its first Gift City financing last year. The airline secured the financing for four one new A321neo with Credit Agricole Corporate & Investment Bank (CACIB). The transaction was structured through a dedicated aircraft leasing company, wholly owned by Indigo and incorporated in GIFT City. This transaction was supported by an aviation non-payment insurance (ANPI) policy through the managing general agent (MGA) Itasca, which was jointly created and launched by Castlelake and Pine Walk Capital in late 2023.
In addition, the airline has closed three Balthazar insurance-backed financings, as well as recently closing operating leases for five A321neo aircraft with a lessor.
IndiGo had also signed a firm agreement with Norse Atlantic to wet lease one 787 Dreamliner on February 6, 2025.
The aircraft is expected to start operations in March 2025, serving long haul routes from India. The initial term of the agreement is six months, extendable to up to 18 months.
IndiGo's operations are largely domestic and regional short- to medium-haul services, but are looking to expand by adding long-haul services. IndiGo had placed an order for 30 A350-900 widebodies in April last year, with the option for an additional 70 A350 family aircraft. Deliveries are expected to commence in 2027.
The airline had previously ordered 300 A320neo family aircraft in 2019. This was then followed by 500 A320 family aircraft during the Paris Airshow in 2023 — the single largest order with Airbus. The airline said the order will provide it a “steady stream” of deliveries between 2030 and 2035. The order consists of A320neo, A321neo, and A321XLR aircraft.