Interglobe Aviation to lend $43 Million to IFSC subsidiary

20 Dec 2024 , 07:23 AM

InterGlobe Aviation Ltd, parent company of India’s largest airline IndiGo, would grant a USD 43 Million credit to its wholly-owned subsidiary IndiGo IFSC for aircraft acquisition. InterGlobe Aviation Financial Services IFSC, often known as IndiGo IFSC, is registered at GIFT City. It is an aircraft, aircraft engine, and ground support equipment leasing company.

InterGlobe Aviation Ltd’s board approved a USD 43 Million loan for the company on Thursday, according to a regulatory filing.

According to the filing, the inter-corporate loan will help IndiGo IFSC meet “its funding requirements for the acquisition of aircraft”.

According to the declaration, the unsecured loan will have an interest rate based on the six-month SOFR benchmark, plus an additional 275 basis points spread per year.

Interest will be paid monthly, with the principal repayment scheduled until the end of the 10-year term.

The transaction was carried out on an arm’s length basis and complies with Section 186 of the Companies Act of 2013. The corporation has said that no security will be offered for the loan.

IndiGo IFSC is a wholly owned company of InterGlobe Aviation that manages the airline’s finance operations for aircraft acquisitions.

IndiGo reported a loss of ₹987 Crore for the second quarter ended September 2024, against a net profit of ₹189 Crore in the previous corresponding period. Revenue from operations rose 14% year on year to ₹16,970 Crore.

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