February 6, 2019 / 2:38 PM / 5 months ago

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

FILE PHOTO: The new Boeing 787-10 Dreamliner taxis past the Final Assembly Building at Boeing South Carolina in North Charleston, South Carolina, United States, March 31, 2017. REUTERS/Randall Hill

DUBAI (Reuters) - Abu Dhabi’s Etihad Airways has approached banks to raise over $500 million (386 million pounds) 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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