Rolls-Royce Holdings PLC (LON:RR.) is reportedly planning a £1.5bn fundraise to shore up its balance sheet amid a deep crisis in the aviation industry.

The engine maker is expected to pursue a rights issue for existing investors at a discount to market price, according to Reuters.

READ: Long haul ahead for Rolls-Royce

The company is in discussions with BNP Paribas, Morgan Stanley and Jefferies and may carry it out in September.

Rolls-Royce has been battered by the pandemic, factoring in a US$1.5bn cash hit from reducing a hedging position on future business by US$10bn to US$27bn.

Earlier this month it announced 9,000 jobs will be lost worldwide, of which 8,000 are at its aerospace arm.