Indigo inks $2.6 bn leasing deal with Chinese bank

Budget passenger carrier IndiGo has signed a $2.6 billion finance and leasing agreement with the Industrial and Commercial Bank of China under which the latter will finance more than 30 new aircraft, it was announced here on Wednesday.

Budget passenger carrier IndiGo has signed a $2.6 billion finance and leasing agreement with the Industrial and Commercial Bank of China (ICBC) under which the latter will finance more than 30 new aircraft, it was announced here on Wednesday.

Wang Hejun, commercial counsellor at the Chinese embassy, made the announcement at a Ficci-organised India-China business meeting here that began soon after Chinese President Xi Jinping touched down in Ahmedabad at the start of his official visit to India.

Under the memorandum of understanding, the Chinese bank will provide IndiGo with financing for the planes through either a sale and lease back or commercial lending deal.

The agreement is part of the financial cooperation deals among the trade and investment deals worth billions of dollars expected to be signed during Xi's ongoing India visit.

Among the other financial agreements, Wang said China Development Bank is to give India's Exim Bank a loan of $200 million.

The Bank of China has agreed to open a branch in Mumbai, he added.

Agreements worth over $3 billion are to be signed during Xi's visit, the nature of which promises to take the India-China economic relationship to a new level.

Agreements will be signed Thursday to set up two industrial parks in India that would lead to the creation of 150,000 new jobs, the Chinese diplomat said.

The business initiatives during the Chinese president's India visit are designed to address the issue of trade deficit by having more Chinese investment in India, said Sanjeet Singh, director in the commerce ministry.

The event ended with various MoUs being signed between Indian and Chinese companies.