SINGAPORE - China's biggest airlines plan to sell the most bonds on record to fund growth even as the central bank is driving up borrowing costs and the industry forecasts a 46 percent plunge in profits on soaring fuel prices.

China Eastern Air Holding Co sold 500 million yuan ($76 million) of 5.31 percent five-year bonds on Feb 22, the only issuer among carriers in the BRIC economies (Brazil, Russia, India and China) this year. China National Aviation Holding Co, parent of Air China Ltd, and Hainan Airlines Co disclosed plans last week to offer a combined 15 billion yuan of bonds this year, setting the market up for the biggest issuance since at least 2005, according to data compiled by Bloomberg.

Yields on Chinese airline bonds are approaching their highest level in 14 months after the central bank raised borrowing costs three times since mid-October to damp inflation.