Deutsche Bank AG is marketing a US$230 million private-credit deal for Malaysian budget airline AirAsia Aviation Group, according to people familiar with the matter, testing investor demand for the carrier amid rising fuel prices.

The 18-month transaction takes the form of a revenue bond backed by ticket sales of several AirAsia routes, said the people, who asked not to be named discussing private matters. Deutsche Bank has underwritten and fully funded the deal, and is now approaching selected banks and funds for syndication, they said.