Overview

ICBC loans $2.6B to lease 30 aircraft to India's IndiGo

Commitments (Constant USD, 2023)$2,666,438,270

Commitment Year•2014Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Sep 17, 2014

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

IndiGo airlines

Loan desecription

ICBC loans $2.6B to lease 30 aircraft to India's IndiGo

Interest type•Unknown

Narrative

Full Description

Project narrative

On September 17, 2014, during a meeting of multiple Chinese and Indian businesses in New Delhi, India's air company IndiGo Airlines and China's Industrial and Commercial Bank (ICBC) signed a MoU where in the ICBC will finance the leasing of over 30 Airbus A320s for the Indian airline. The deal is for 2.6 billion USD and will provide financing for the planes through either a sale and leaseback, financial lease or commercial lending, IndiGo signed an MoU with Airbus in October 2014 to purchase 250 Airbus A320neo planes. Funding would be taken care of by external commercial borrowings, bank debt and sale and leaseback including the signed MoU with ICBC (ICBC Financial Leasing Co. Ltd.). From the latest order, planes will start coming from 2018.