EasyJet has mandated three banks for its first bond issue and will run an investor roadshow next week.

Bank of America Merrill Lynch, Barclays and Societe Generale have been called in to arrange the transaction.

A euro or sterling bond of either €500 million or £300 million is believed to be under consideration.

The investor meetings are to run from January 12 to 15 in London, Edinburgh, Amsterdam, Paris, Munich and Frankfurt.

The budget airline said: “Any funds raised from the programme will be used to support the continued delivery of easyJet’s successful strategy, its planned annual passenger growth of between 7-8% and, in particular, the airline’s already published fleet requirements which support this profitable growth.”

The programme is intended to give easyJet access to new and cheaper sources of funding, and comes after it won investment grade ratings from two key ratings agencies.

The airline has been assigned investment grade ratings of BBB+ (stable) by Standard & Poor’s and Baa1 (stable) by Moody’s which the airline said reflected the quality of its business model, a sustained track record of profitable growth, the strength of easyJet’s balance sheet and the high levels of cash generated.