DUBAI - Etihad Airways, wholly owned by the Abu Dhabi government, on Tuesday began marketing U.S. dollar-denominated "transition" sukuk, or Islamic bonds, a document showed.

The airline gave initial price guidance in the mid-2% area for the sukuk, according to the document from one of the banks arranging the deal, which is expected to close on Wednesday.

So-called transition bonds are used by companies to gradually switch to more environmentally sustainable operations.

(Reporting by Yousef Saba; Editing by Sam Holmes) ((Yousef.Saba@thomsonreuters.com; +971562166204))