A joint venture between Bharti Enterprises and Warburg Pincus is preparing to raise around INR40bn ($451m) through a bond issuance next quarter to help finance its acquisition of a 49% stake in Haier’s India business, according to a report by Reuters citing unnamed people familiar with the matter.

The bonds are expected to carry a coupon of 11–12% and are likely to attract demand from large mutual funds and non-banking financial companies. Kotak Investment Bank is understood to be arranging the issue.

Bharti and Warburg reportedly agreed a $720m deal earlier this year for the Haier stake, marking one of the largest private equity-led investments in India’s consumer electronics sector. The fundraising underscores the growing use of the domestic corporate bond market to support acquisition financing, a space previously dominated by offshore lenders and credit funds.

Bharti Enterprises, Warburg Pincus, Haier, and Kotak Mahindra Bank declined to comment.

You can read more on this from Private Equity Wire, here.