Hainan Airlines announced its subsidiary Lucky Air has raised 500 million yuan from its first of 2017 paper issue.

The super-short-term bonds, issued to institutional investors via the China interbank bond market, have a maturity of 270 days, with an annualized interest rate of 4.8%.

Hang Fung Bank acted as the lead underwriter for the issue, the Haikou-based airline said Wednesday in a stock exchange statement

Proceeds from the issue will be used to repay debts and replenish working capital.

In addition, Lucky Air has unveiled its first U-FLY-branded aircraft in Kunming, which will start operations on March 11.