China Airlines to raise NT$12bn through corporate bonds

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China Airlines is planning to issue unsecured corporate bonds to raise up to New Taiwan dollars (NT$) 12 billion ($413 million) to finance its incoming aircraft order.

The bonds will be in denominations of NT$100 million and the issuing period will depend on market conditions, the carrier said in a statement on the Taiwan Stock Exchange.

"The main purpose is to raise NT$12 billion of funds for next year's pre-delivery payments of the new Airbus A350s," says a spokeswoman, adding that part of the proceeds will also go towards the carrier's operational needs.

The SkyTeam alliance member has orders for 14 A350-900s, which are due to be delivered from 2016, and has options for another six more. These aircraft will replace its fleet of six Airbus A340-300s.

The Taiwanese carrier's board also gave its approval on 6 December for the airline to place an order for six Boeing 777-300ERs to replace some of its aging 747-400s.