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.