Hainan Airlines, China's fourth-largest air carrier, said on Friday that it planned to issue up to CNY3 billion yuan (USD$429 million) in five and 10-year corporate bonds to pay back bank debt and supplement working capital.

Hainan Airlines also planned to pay CNY515 million in cash to buy a 6.44 percent stake in Shenzhen Financial Leasing, China's biggest financial leasing company which focuses on aircraft leasing business.

The moves need the approval of shareholders and regulators, Hainan Airlines said in a statement published in the official Shanghai Securities News.