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.

(Reporting by Dharamraj Dhutia; Editing by Dhanya Ann Thoppil and Varun H K)