Turkish Airlines is in the market with an enhanced equipment trust certificate (EETC) aircraft financing, potentially becoming the second non-US airline to tap the public markets this year, say market sources.
The deal, which is expected to close in the second half of the year, would mark the carrier's first EETC financing.
No further details were available about the specific collateral backing the offering.
Last month, Air Canada came to market with a $714.5 million EETC, the airline's first aircraft financing in the capital markets. British Airways-parent International Airlines Group is understood to be working on a similar deal, after issuing a prospectus earlier this year, say market sources.
Doric's Nimrod Air Two transaction for Emirates became the first non-US EETC to hit the market since the financial crisis of 2008. The transaction financed four Airbus A380s in June 2012.
Proceeds from the EETC funding would be used to finance Turkish's upcoming aircraft deliveries, say sources.
Last month, Turkish announced plans to order up to 95 Boeing 737s including 75 737 Max family units, in a narrowbody deal which follows an agreement to take the Airbus A320neo.
The carrier says it will acquire 70 aircraft plus 25 options. The agreement includes 65 737-8 Max and 10 737-9 Max twinjets, as well as 20 more 737-800s.
Delivery of the aircraft will begin in 2016. Twenty will arrive in the first year, with another 20 in 2018. It will take 15 more in 2019, 30 in 2020 and the remaining 10 in 2021.All 737-800s are powered by CFM International CFM56s while the manufacturer's Leap-1B will power the 737 Max.
The airline unveiled plans, in March, to order up to 117 single-aisle Airbus twinjets including 57 A321neo and A320neo jets plus 25 A321s. Turkish has placed options on another 35 A321neos.
The carrier also holds orders for 15 Boeing 777-300ER aircraft with three units delivering in 2014, followed by seven more in 2015 and the remaining five aircraft in 2016, according to Flightglobal's Ascend Online database. Ten 737-800 aircraft will join the fleet in 2014, followed by five 737-900ER units in 2015. Turkish will also receive 19 Airbus A330-300s through 2016, while four A321s will join the fleet this year.