MUMBAI : Interglobe Aviation Ltd. which operates the country’s largest airline under the brand IndiGo has secured a credit facility of around 2,577.75 crore since April for meeting its working capital needs, while targeting an expansion of the carrier’s fleet.

On 17 June, IndiGo signed a $20 billion agreement with aircraft engine maker CFM International to buy CFM International LEAP-1A engines to power 280 Airbus A320neo and A321neo aircraft. The deal includes supply of spare engines and an engine overhaul support agreement.

According to filings with the ministry of corporate affairs, on 6 May, the airline secured an amount of 660.32 crore from Credit Agricole CIB by creating an exclusive charge over a part of IndiGo’s fixed deposits.

The credit facility of 2,577 crore availed by IndiGo during the April-June period is more than three times as compared to the corresponding quarter of last year. Last year, the airline secured credit facilities worth about 778.06 crore, which included a facility of 78.06 crore from Kotak Mahindra Bank and 700 crore from HSBC through a pledge of mutual fund investments and lien on fixed deposits owned by IndiGo.

Again, on 3 June, IndiGo secured a credit facility of 867.43 crore from Deutsche Bank AG by pledging the airline’s investments in three mutual fund schemes managed by Aditya Birla Sun Life Mutual Fund, ICICI Prudential Asset Management and SBI Mutual Fund.

The airline previously had a credit facility of 458.35 crore from Deutsche Bank through a pledge of IndiGo’s mutual fund investments.

Earlier, on 4 April, IndiGo secured a credit facility of 1,050 crore from Standard Chartered Bank by enabling a first and exclusive charge over IndiGo’s mutual fund investments and by creation of a lien over IndiGo’s fixed deposits worth 185 crore, including the interest over such deposit in favour of the bank and any renewals or rollovers of further deposits with the bank.

Interglobe Aviation is currently undergoing a scrutiny by the Securities and Exchange Board of India over allegations of corporate governance lapses with regards to related party transactions with its co-promoter Rahul Bhatia-led IGE Group. Also, IGE Group and IndiGo’s other co-promoter Rakesh Gangwal are entangled in a public dispute as the Gangwal-led RG Group feels that powers to manage businesses and appoint directors on the board of IndiGo are disproportionately in favour of the IGE Group.

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