The board of Spring Airlines has approved a plan to issue up to CNY2.5 billion ($366 million) in unsecured bonds with a maturity of up to five years.

The Shanghai-listed carrier states in a stock exchange disclosure that it intends to use the funds raised from the proposed issue will be used to supplement its working capital and repay existing debts.

No timelines nor underwriter for the proposed bond issuance were disclosed in the statement.

The approval from the airline’s board stands for two years from 20 September, but it appears that further approvals from China’s securities regulator will be required before the carrier issues its first tranche of bonds.

Source: Cirium Dashboard