Clifford Chance advises SMBC on first-of-its kind JOLCO transaction for IndiGo in India

Global law firm Clifford Chance has advised Sumitomo Mitsui Banking Corporation (SMBC), as debt arranger and lender, on a pioneering Japanese Operating Lease with Call Option (JOLCO) transaction for InterGlobe Financial Services IFSC Private Limited (a wholly owned subsidiary of IndiGo based in GIFT City, India’s international financial services centre for cross‑border financing), with equity arranged by Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL).

The transaction involved the financing of two Airbus A320neo family aircraft and represents the first ever JOLCO structure to be executed in India through GIFT City, marking a significant milestone for the country’s aviation finance market.

The transaction sets an important benchmark for innovative aircraft financing in India, providing IndiGo Group with a flexible and cost-effective leasing solution as it continues to expand its fleet and strengthen its market position. The successful completion of the transaction highlights the growing sophistication of India's aviation finance market and the increasing appetite for advanced financing structures.

Lead partner Fergus Evans commented, "We are delighted to have supported SMBC on this landmark transaction, which paves the way for further innovation in the Indian aviation finance market. Delivering the first JOLCO transaction in India required a collaborative and solutions-focused approach from all parties, and we are proud to have played a role in bringing this important deal to fruition."

Fergus was assisted on the transaction by counsel Nattawat Vilasdechanon, senior associate Vanessa Heng and associate Caiying Seah.

The transaction underscores Clifford Chance’s expertise in complex cross-border aviation finance and its ability to support clients on first-of-their-kind transactions in high-growth markets.