MUMBAI, Sept 25 (Reuters) - A joint venture between

Bharti Enterprises and private equity firm Warburg Pincus is

looking to raise 40 billion rupees ($451 million) through the

sale of bonds in the next quarter, three sources aware of the

matter said on Thursday.

The Bharti-Warburg joint entity will likely offer a coupon

of 11%-12%, and is expected to attract demand from large mutual

funds as well as non-banking financial companies (NBFCs), the

sources said.

Kotak Investment Bank is the arranger for the deal, they

said.

The sources requested anonymity as they are not authorised

to speak to media. Bharti Enterprises, Warburg Pincus, Haier and

Kotak Mahindra Bank did not immediately respond to Reuters

emails seeking comment.

In July, local media reported that the duo jointly bid $720

million for a 49% stake in the Indian arm of Haier, a Chinese

electronics maker.

The bond issue adds to a rising trend of firms tapping the

corporate bond market for funding large acquisitions.

Foreign lenders and credit funds have typically dominated

this type of financing.

Earlier in the day, Reuters reported that JSW Group plans to

raise 70 billion rupees through the issuance of zero-coupon

bonds before the end of September to finance an acquisition.

($1 = 88.6860 Indian rupees)