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India's Shriram Finance plans to raise funds through U.S. dollar denominated bonds maturing in three years and three months, two merchant bankers said on Tuesday.

The funds will be used to support social projects and other activities allowed under the Reserve Bank of India's external commercial borrowing guidelines, a term sheet showed.

The company has not disclosed the amount it plans to raise, but bankers have indicated that it may raise between $500 million to $1 billion through this issue.

Shriram Finance did not immediately reply to a Reuters email for comment.

Barclays, BNP Paribas, Citigroup, DBS Bank, Deutsche Bank, Emirates NBD Capital, HSBC (B&D), J.P. Morgan, MUFG, SMBC Nikko and Standard Chartered Bank are the joint global coordinators and bookrunners for the issue.

Fitch Ratings and S&P Global are expected to rate the issue BB, which is in line with their issuer ratings for the company.

The company has given an initial guidance for a coupon of around 7.00%, and the issue would be settled on Jan. 22, the bankers added.