The bonds, which can also be exchanged with existing Air France shares, will be offered through a placement to qualified investors, the airline said.

Proceeds will be used to repay bonds held by the French state, it said, adding that shipping company and existing Air France investor CMA CGM, which owns a 9% stake, had expressed the intention to participate to the placement pro-rata to its current shareholding.

"The company is not aware of any subscription intention from its other main shareholders," it said.

($1 = 0.9613 euros)

(Reporting by Silvia Aloisi, Editing by dDminique Vidalon)