Air China is closing the bidding process for financing submissions covering a total of 21 Airbus and Boeing aircraft, say banking sources.
The carrier is expected to mandate financiers for the transaction "within the coming weeks", says a source.
Air China approached the market earlier this year with a request for proposals including export credit agency (ECA) guaranteed loans and commercial debt financings.
According to Flightglobal's Ascend Online database, deliveries in the second-half of this year include 15 Airbus A320s, A321s, 737-700s and 737-800s. The carrier will also receive one Airbus A330-200, three A330-300s as well as two Boeing 777-300ERs during the period.
Air China told bankers and financial institutions that it does not need external financing for this year's first-half deliveries as it plans to use cash resources and will refinance the aircraft with bonds, according to a financier.
Last month the carrier said it planned to raise CNY5 billion ($804 million) by issuing 10-year bonds with a coupon rate in the range of 4.95-5.35%. The final rate will be determined later by the airline and its underwriter, CITIC Securities.
Further bond issues are expected soon, with the airline noting that it has permission to raise up to CNY10 billion through bond issues.
Air China has three Airbus A320s deliveries scheduled in in January, March and May. Two A321s will join in February and May while two A330-200 deliveries are scheduled in February and April.
Air China will receive six Boeing 737-800s in the first six months of this year as well as two 777-300ERs in May and one 777-300ER in June.
The carrier has also entered a number of sale and leaseback transactions on its upcoming Airbus A330 pipeline. An A330-200 delivery scheduled for February is due to be acquired by Bocom Leasing while another aircraft of the type, due in March, will be acquired by ICBC Leasing under a 12-year sale and leaseback transaction.
ICBC Leasing is also expected to acquire an A330-300 (MSN 1383) as well as another A330-300 due in May under similar sale and leaseback transactions.