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HomeMarket NewsIndiGo approves $43 million loan for aircraft acquisition by subsidiary
InterGlobe Aviation Limited has approved a $43 million inter-corporate loan to its wholly owned subsidiary, IndiGo IFSC, to fund aircraft acquisitions.
By Sheersh Kapoor December 19, 2024, 8:38:52 PM IST (Published)
InterGlobe Aviation Limited, operating India’s largest airline, IndiGo, has announced the approval of an inter-corporate loan of up to $43 million for its wholly owned subsidiary, IndiGo IFSC.
The decision was made during the company’s Board of Directors meeting on December 19, 2024.
The loan aims to meet IndiGo IFSC’s funding requirements for aircraft acquisitions. According to the disclosure, the unsecured loan will carry an interest rate based on the six-month SOFR benchmark, with an additional spread of 275 basis points annually.
Interest will be payable monthly, and the principal repayment is scheduled for the end of the 10-year tenure.
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The transaction is in compliance with Section 186 of the Companies Act, 2013, and was executed on an arm’s length basis. The company has clarified that no security will be provided for the loan.
IndiGo IFSC is a wholly owned subsidiary of InterGlobe Aviation and plays a critical role in managing the airline’s financial operations for acquiring aircraft.
Shares of InterGlobe Aviation closed 1% higher at ₹4,434.45 on the BSE today.
