48906 - AerCap Indigo

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental & Social Review Summary

Project Number

48906

Company Name

AerCap Holdings N.V.

Date ESRS Disclosed

Sep 19, 2024

Country

Ireland

Region

Europe

Last Updated Date

Mar 22, 2025

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : May 28, 2024
Signed : Sep 12, 2024
Invested : Mar 20, 2025

Sector

Air Transportation

Industry

Infrastructure

Department

Regional Industry - INF Asia & Pac

Project Description

The proposed investment is a loan of US$155.5 million to a Special Purpose Vehicle, Pio Engine Leasing Limited (“AerCap SPV”or the “Borrower”) incorporated in Ireland and 100% owned by AerCap Ireland Limited (https://www.aercap.com/), a 100% subsidiary of AerCap Holdings NV (AerCap or the “Sponsor”).

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 Support “SES”), over 300 owned helicopters, and total assets of $71 billion as of June 30, 2024.

The IFC financing is for the leasing of up to 13 CFM Leading Edge Aviation Propulsion (LEAP) -1A26 and CFM LEAP-1A30 new generation (spare) engines to InterGlobe Aviation Limited (which operates as IndiGo, India's leading low-cost airline https://www.goindigo.in/), with lease terms of over 10 years (the “Project”).

AerCap SPV's sole purpose is to acquire 13 engines for lease to IndiGo. The engines will be used for commercial flights, subject to the airline's operational and maintenance procedures. The SPV will not have any office, staff or management systems separate from the Sponsor. According to the Master Engine Lease Agreement between the AerCap SPV and IndiGo, the SPV will have no direct role in the delivery, operation, maintenance, and/or repair of the leased engines, all of which will be IndiGo's responsibility.

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 technology CFM56-5B engine. The Project will strengthen IndiGo's operational efficiency and reliability by ensuring adequate availability of spare engines to minimize aircraft downtime as well as support their decarbonization strategy with the use of the most fuel-efficient engines available in the market today.

Overview of IFC's Scope of Review

IFC's E&S review focused on the business activities of the new AerCap SPV, i.e., the Borrower. This review included video calls with the Sponsor's Ireland-based management and E&S staff in November 2023. Key documents reviewed include the Borrower's Master Engine Lease Agreement with Indigo, AerCap's ESG Sustainability report (2023) available here: https://www.aercap.com/esg/esg-reports, and other corporate policies, organizational capacity, and ESG management programs. Internet searches did not identify any E&S risk for AerCap or any of its related entities.

E & S Project Categorization and Applicable Standard

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards

PS 1 - Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and Working Conditions
PS 3 - Resource Efficiency and Pollution Prevention

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 the 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.

Environmental and Social Mitigation Measures

IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.

AerCap has in place a robust ESG Management System that includes policy commitments, management programs, organizational capacity, and monitoring and review procedures, among others, and which will be applied to the SPV's business activities. AerCap has various ESG policies and procedures in place to facilitate compliance with applicable E&S laws and regulations in their main office jurisdiction (Dublin, Ireland), and the many other countries where they operate. AerCap's 2024 ESG Report confirmed no identified compliance breaches or violations in 2023.

AerCap applies a risk-based approach to screening new and existing customers, followed by negotiating contractual requirements for clients to operate and maintain AerCap assets according to the laws and regulations of the relevant aviation authority and host country jurisdiction. AerCap regularly reviews the operating and maintenance records of their aircraft and engines that their lessee clients are required to provide. They consider ESG factors in their client and service partner selection processes and have over 50 years' experience in aircraft dismantling and recycling, helping to ensure that aircraft are retired in adherence with strict environmental protocols.

AerCap’s Board-level ESG Committee oversees ESG risks and opportunities at the corporate level. This Committee sets and reviews AerCap's ESG strategy, policies, and targets. The ESG Management Committee and ESG teams support the Board on strategy and policy implementation, monitoring, and reporting. AerCap's human resources policies are aligned with IFC PS2 Labor and Working Conditions, and include commitments to equal opportunity, non-discrimination, and diversity and inclusion, among others. AerCap has a comprehensive Code of Conduct, and a zero-tolerance policy for any ethical violations, including human rights violations such as gender-based violence, modern-day slavery, child labor and human trafficking, among others.

AerCap purchases only new-generation, fuel-efficient aircraft, and engines. New technology aircraft comprise 72% of the AerCap aircraft fleet as of June 30, 2024. These investments in new aircraft technology have enhanced the fuel efficiency of their clients' fleets, reducing their clients Scope 1 CO2 and AerCap's own Scope 3 CO2 emissions. In addition, these aircraft and engines significantly reduce noise and air pollution (NOx emissions).

Stakeholder Engagement

AerCap has published an annual ESG Report since 2018 and currently counts more than 45,000 followers across four popular international social media platforms. These reports and posts provide evidence of the company's sustainability commitment to promote transparency and focuson what matters most to their stakeholders, including governments, industry participants, communities, and NGOs, among others. AerCap encourages feedback and dialogue from their stakeholders and invites anyone with financial and/or non-financial queries to reach out to the Head of Investor Relations, VP Corporate Communications, or any of their 13 international offices identified on the Contact section of their internet site (www.aercap.com/contact). AerCap also supports a range of charities, matching employee donations to strengthen the communities in which they operate. Key themes promoted have included prevention of violence against women, and mental health and suicide prevention.

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Similar Projects

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

Local Access of Project Documentation

Press-Release

Related SII

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer