IndiGo’s parent InterGlobe Aviation will look to obtain approval in August 2018 from its shareholders for borrowing an additional Rs 10,000 crore (US$1.46 billion) to fund $4.3 billion in future aircraft deliveries.
“The company securitizes its supplementary rental obligations due towards the lessors for aircraft on operating leases and issues Standby Letters of Credit (SLBCs) in favor of the lessors. The company will be taking deliveries of a significant number of additional aircraft on a operating lease basis for which new SBLCs will be required to be issued to the lessors,” according to the notice to the shareholders.
InterGlobe Aviation will also seek to cut costs on bank charges associated with the facilities.
IndiGo currently operates a fleet of more than 160 aircraft.