IndiGo Secures Landmark Japanese Tax Equity Deal, a First for Indian Aviation

Indian carrier IndiGo has successfully financed a new Airbus A321neo using a Japanese Operating Lease with Call Option (JOLCO), marking a significant milestone for the nation's aviation sector. This is the first time an Indian airline has accessed the Japanese tax equity market for aircraft financing. The complex transaction required navigating India's specific legal and tax frameworks, particularly concerning the Cape Town Convention. The deal was arranged by ABL Aviation with financing from SMBC. This successful JOLCO structure opens a new and deep pool of capital for other Indian airlines, potentially lowering future financing costs and diversifying funding sources for the rapidly growing market.

Official Source: https://www.ishkaglobal.com/News/Article/8168/Briefing-How-IndiGo-unlocked-Japanese-tax-equity-for-Indian-aviation

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