Portuguese airline TAP says it is in talks with Chinese banks about obtaining 350 million euros (about US$375.9 million) in financiang, Lusa reports.

The Portuguese news agency quotes TAP as telling the Portuguese aviation regulator in a letter sent last week that it has asked for Portuguese state guarantees for financial backing being set up by Haitong Bank and the Spanish subsidiary of Industrial and Commercial Bank of China Ltd (ICBC).

TAP says Haitong proposes to place out privately up to 200 million euros worth of TAP bonds, and to underwrite up to 50 percent of the issue.

The airline says ICBC is preparing to subscribe or syndicate an issue of 150 million euros worth of TAP bonds with a three-year maturity.

The money is vital for keeping to the minimum the damage caused to the airline by the Covid-19 pandemic, and for ensuring that the airline is financially sustainable, Lusa quotes the TAP letter as saying.