AerCap Indigo (IFC-48906)

Countries
  • Ireland
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 28, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
AerCap Holdings N.V.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 13, 2025

Disclosed by Bank Sep 19, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website,  the proposed investment is in the form of a long-term, secured, and guaranteed debt financing of up to US$155.5 million to a special purpose vehicle, Pio Engine Leasing Limited (the SPV or the Borrower) to be incorporated in Ireland and 100% owned by AerCap Ireland Limited, a 100% subsidiary of AerCap Holdings N.V. (AerCap or the Sponsor).

The financing is for acquisition of 13 CFM Leading Edge Aviation Propulsion (LEAP)-1A26 and CFM LEAP-1A30 new generation (spare) engines to be leased to InterGlobe Aviation Limited (which operates as IndiGo), in India, with lease terms of over 10 years (the Project).

The LEAP-1A engine features some of the industry's most cutting-edge technologies, offering up to 15% better fuel efficiency and up to 50% reduction of NOx emissions in comparison to the current tech CFM56-5B engine. Each lease for the 13 engines may be structured via a head-lease/sub-lease structure through one or more entities, which may be established directly or indirectly withinGujarat International Finance Tec-City(GIFT City) in India.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012) because the IFC-financed business activity has limited adverse environmental or social risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. Considering that AerCap SPV will not have a direct role in the delivery, operation, maintenance, or repair of the leased engines, the key E&S aspect under this project relates to monitoring by the SPV of the Lessee’s compliance with the lease agreement provisions, Original Equipment Manufacturer (OEM) specifications, and regulatory authority directives; especially where these involve health and safety conditions, and pollution prevention.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

A long-term, secured, and guaranteed debt financing of up to US$155.5 million to a special purpose vehicle (the SPV or the Borrower) incorporated in Ireland. The starting loan to value (LTV) percent depends on the current valuation of the 13 engines, which stands at approximately US$239 million based on average maintenance adjusted valuation (based on three valuation reports), translating to an LTV percent of approximately 65 percent for the proposed loan amount of US$155.5 million.

IFC's Investment as Approved by the Board: Loan 250.0 million (USD)

 

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

AerCap is the global leader in aviation leasing with 2,063 aircraft owned, managed or on order, over 1,000 engines (including engines owned and managed by Shannon Engine SupportSES), over 300 owned helicopters, and total assets of $71 billion as of June 30, 2024.

AerCap's ordinary shares are listed on the New York Stock Exchange under the ticker symbol AER. AerCap's headquarters are in Dublin, Ireland, with other offices in Shannon, Miami, Singapore, Memphis, Amsterdam, Shanghai, Dubai and other locations.

It is rated internationally BBB+ by S&P, BBB by Fitch and Baa1 by Moody's and is the world's first independent lessor to hold investment grade rating. The Company serves approximately 300 customers around the world with comprehensive fleet solutions and has an employee base of c.650 people.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - AerCap Holdings NV Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AerCap Holdings NV
Eimear Gilmartin
Assistant Treasurer
+353 1 819 2043
egilmartin@aercap.com
DublinD02 YX20, Ireland
https://www.aercap.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works