February 6, 2019 / 1:43 PM / 2 months ago

Etihad approaches banks for over $500 million for Boeing deliveries: sources

An Etihad Boeing 787-9 Dreamliner aircraft takes off from Zurich Airport January 9, 2018. REUTERS/Arnd Wiegmann

DUBAI (Reuters) - Abu Dhabi’s Etihad Airways has approached banks to raise over $500 million to finance four Boeing 787 Dreamliners it previously ordered, two sources familiar with the matter said.

The state carrier sent a request for proposals to banks last week for the financing, which is likely to be provided through bilateral loans or loans involving a small club of lenders, they said.

Etihad declined to comment.

It is common for airlines to approach banks to help finance aircraft deliveries.

Loans for 787s generally have a maturity of 12 years, the sources said, adding that the financing would likely be provided by Abu Dhabi banks.

Etihad operates a fleet of 26 787s and had a further 45 still to be delivered as of December 2018, according to Boeing’s website.

Additional reporting by Alexander Cornwell; editing by Emelia Sithole-Matarise

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