China's Juneyao Airlines is tapping the offshore loan market for its debut borrowing of HK$1.8 billion ($229 million).

Standard Chartered is the sole lead arranger and bookrunner for the facility.

The loan has a door-to-door life of three years. The company will start to repay the loan at the end of the first year and will repay 10% every six months. The remaining 60% will be paid at maturity.

The average life of the loan will be 2.5 years.

It offers a margin of 160 basis points (bps) over Hibor. Mandated lead arrangers committing HK$300 million and above make a 62.5bps fee for 185bp all-in; lead arrangers committing HK$200-290 million earn a 50bps fee for 180bps all-in, and arrangers committing HK$100-$190 million earn a 37.5bps fee for 175bps all-in.

The proceeds will be used for general corporate purposes.

Lenders have until 31 May to make commitments.

Juneyao Airlines was established in 2006. It owns 70 aircraft, including Airbus A320s and Boeing 787s, covering over 50 cities, according to its website. The company was listed on the Shanghai Stock Exchange in 2015.

The carrier is a subsidiary of Chinese private company JuneYao Group. The parent engages in aviation, financial services and real estate.