Kuwait Airways is seeking a KD250m ($825m) syndicated loan from Kuwaiti banks, according to sources in the country.

The non-recourse, on-balance sheet corporate loan will finance aircraft purchases.

Early documents sent to banks offered five- and 10-year tenors for the financing.

Mandated lead arrangers have yet to be appointed, according to one of the sources.

Kuwait Airways ordered 35 aircraft in 2014, as part of a major fleet renewal. This included 10 Boeing 777-300ERs, valued at $3.3bn at list prices, 10 Airbus A350-900s and 15 A320neos. It also agreed to lease seven Airbus A320ceos and five A330-200s.

In May 2015, Dubai’s International Airfinance Corporation syndicated a $400m Islamic finance deal. This was to purchase five Airbus A330-200s, to be leased to Kuwait Airways.

Delivery of the Airbus planes began in mid-2015. The first Boeing aircraft is due to be handed over this month.