IndiGo Airlines to raise $535mn through share sale

IndiGo Airlines (6E, Delhi Int’l) has announced in a stock market filing that the Board of Directors of parent holding InterGlobe Aviation approved the plan to raise up to INR40 billion rupees (USD535 million) through an issue of equity shares by way of a qualified institutions placement. The details of the issue will be announced once the plan is approved by the shareholders. The planned share issuance would come on top of other measures recently undertaken by the low-cost carrier to strengthen its liquidity. Chief Financial Officer Aditya Pande said during the quarterly earnings call that IndiGo Airlines was seeking to raise INR20 billion (USD267 million) through aircraft sale-and-leaseback and on financial markets. “We are working on sale and lease back of our unencumbered assets which are in advanced stages of discussion. We are also in discussions with export credit agencies for obtaining moratorium towards principal repayment for aircraft on finance leases,” Pande said. While Pande did not disclose further details, The Hindu BusinessLine has reported that the airline was in advanced talks about a sale-and-leaseback of its twelve owned ATR72-600s. IndiGo Airlines is reportedly in talks with Aergo Capital and DAE Capital, although it would prefer to sell the whole dozen turboprops to a single lessor. The ch-aviation fleets ownership module shows that the twelve Avions de Transport Régional aircraft are the only units owned by IndiGo Airlines. The carrier dry-leases a further thirteen ATR72-600s, as well as all of its Airbus narrowbodies (eighty-three A320-200s, 103 A320-200Ns, and eighteen A321-200Ns). It does not lease any aircraft from Aergo Capital, while DAE Capital owns six A320-200s operated by IndiGo. According to sources, the airline hopes to raise between USD216-240 million through the sale-and-leaseback of the ATRs.