Abu Dhabi's Etihad Airways said on Wednesday it will seek to borrow USD$500 million to finance the purchase of aircraft, its second foray into the loan market this year.

"The request for proposals will be furnished this month to local and international banks," the airline's chief financial officer, James Rigney said. "We are open to both conventional and Islamic financing."

Etihad expects to arrange the 12 to 15-year loan by early July to buy four Airbus A340-600 aircraft, Rigney said from Dubai.

The airline said on Tuesday it agreed with Citigroup and Abu Dhabi Commercial Bank to borrow USD$400 million to finance aircraft purchases.

Six other lenders, including Standard Chartered, Qatar National Bank and First Gulf Bank, helped arrange the loan, Etihad said.