Flag carrier Turkish Airlines is in talks with banks to raise up to $3 billion in loans for financing the purchase of Airbus and Boeing aircraft to be delivered in 2016, according to three sources.

The Airbus aircraft financing will be 85 per cent guaranteed by the European Export Credit Agency (EECA), while the financing for the Boeing aircraft and a General Electric spare engine will have an 85 per cent guarantee from the Export-Import Bank of the United States, the sources said.

Turkish Airlines is seeking funds in tranches with a maturity of 12 years and a minimum five year lifespan. It will be accepting bids in multi-currencies and with floating and fixed interest rate offers, the sources said.

The state carrier said it was open to other financing options such as commercial loans, Islamic financing and others.

The airline is due to take delivery of 17 Airbus planes in 2016: 10 A321-200s, five A330-300s and two A330-200Fs. Boeing is due to deliver 26 aircraft: 20 B737-800s, six B777-300ERs. The funding request also includes a spare GE engine.

The loan facilities will not have any sovereign guarantee and the prices of the aircraft mentioned in the document were approximate, the sources said.

Turkish Airline has asked banks to submit proposals by July 27, the sources said. - Reuters