IndiGo trades 7.8% higher following news of proposed leaseback of 12 ATR aircraft

Business Standard has reported IndiGo airline is working on the sale and leaseback of unencumbered assets, including 12 ATR aircraft, the news source said.

Shares of InterGlobe Aviation, the parent firm of India´s largest airline by market share IndiGo, increased 8 per cent to INR 1,015 on the BSE on Wednesday amid reports that the airline is in talks with with two lessors to sell and lease back 12 of its ATR 72-600 aircraft and their engines.

During its board meeting on August 10, the airline had approved to raise INR 4,000 through an issue of equity shares by way of a qualified institutions placement.

The airline is in discussions with export credit agencies for obtaining moratorium toward principal repayment for aircraft on finance leases, which could help the airline raise up to INR 2,000.