Indian and Chinese businesses Wednesday inked agreements worth $3.43 billion, including the $2.6-billion deal between low-cost carrier IndiGo and China's largest commercial bank ICBC. Under the pact with Indigo, Industrial and Commercial Bank of China Ltd (ICBC) will finance the no-frill airline's plans to purchase over 30 aircraft.
The announcement of MoUs, signed at a India-China business meeting organised by Ficci, coincides with the visit of Chinese President Xi Jinping, who arrived in Ahmedabad Wednesday on a three-day visit to India. The Gurgaon-based carrier signed the memorandum of understanding with the ICBC Financial Leasing Company Ltd to execute the deal.
‘Through this MoU, Industrial and ICBC will provide IndiGo financial solutions for the introduction of A320 and the other family of aircraft to the fleet in the form of sale and lease back or financial lease or commercial lending. ‘The number of aircraft would be over 30 and the value of the deal would reach to the amount of $2.6 billion,’ IndiGo President Aditya Ghosh said.
ICBC will provide financing for the planes through either a sale and leaseback, financial lease or commercial lending, Indigo said. IndiGo, one of the few profitable airlines in India, already has a relationship with ICBC and this new effort to further explore the collaboration will cement the relationship for the longer term, it said.
The announcement of MoUs, signed at a India-China business meeting organised by Ficci, coincides with the visit of Chinese President Xi Jinping, who arrived in Ahmedabad Wednesday on a three-day visit to India. The Gurgaon-based carrier signed the memorandum of understanding with the ICBC Financial Leasing Company Ltd to execute the deal.
‘Through this MoU, Industrial and ICBC will provide IndiGo financial solutions for the introduction of A320 and the other family of aircraft to the fleet in the form of sale and lease back or financial lease or commercial lending. ‘The number of aircraft would be over 30 and the value of the deal would reach to the amount of $2.6 billion,’ IndiGo President Aditya Ghosh said.
ICBC will provide financing for the planes through either a sale and leaseback, financial lease or commercial lending, Indigo said. IndiGo, one of the few profitable airlines in India, already has a relationship with ICBC and this new effort to further explore the collaboration will cement the relationship for the longer term, it said.