China Southern Airlines Co., the largest airline by fleet size in the country, announced that it is planning to issue 365-day short-term financing bonds worth RMB 2 billion in the interbank bond market on Oct. 13.

According to the company's statement, the book-entry bonds will be issued at the face value and yield of the bonds will be determined during the book building process.

Proceeds from the bond issue will be used to replenish the company's working capital and repay its debts.

Shenzhen Lianhe Credit Rating Co. Ltd rated the new bonds and the issuer A-1 and AA+ level, respectively. The value date and payment date are both from Oct. 14, while the bonds will become tradable from Oct. 15.

China CITIC Bank Corp. and Bank of China (BOC) were appointed to be the main underwriters for the sale.

On Monday, A-shares of the airline ended flat at RMB 3.69 per share, while its H-shares sharply fell 6.8% to close at HK$1.51.