SYDNEY/MUMBAI, Jan 10 (Reuters) - State Bank of India has mandated six investment banks to work on a potential five-year U.S. dollar-denominated bond issue this month, according to a term sheet seen by Reuters.

Bank of America, BNP Paribas, HSBC, JP Morgan, MUFG and Standard Chartered Bank are the joint lead managers for the proposed issue.

The initial price guidance for the five-year bond issue is at a spread of 150 basis points over the five-year U.S. Treasury yield, and the issue will settle on Jan. 17, the term sheet showed.

The term sheet did not spell out the exact size of the deal but indicated it would be of a "benchmark size" which typically means around $1 billion.

The dollar-denominated senior unsecured notes will be part of India's largest bank's $10 billion medium-term note program.

SBI did not immediately reply to a Reuters email seeking comment.

Proceeds from the bond issue will be used for general corporate purposes and to meet the funding requirement of SBI's foreign offices/branches, the term sheet showed.

S&P Global Ratings has assigned a 'BBB-' long-term issue rating to benchmark-sized notes that the London branch of SBI proposes to issue.

"Our ratings on SBI reflect the bank's dominant market position and its strong deposit franchise. India's robust economic growth supports SBI's loan growth, asset quality, and profitability," the rating agency said on Wednesday.

Earlier this month, SBI raised $1 billion through a syndicated loan. (Reporting by Scott Murdoch and Dharamraj Dhutia; Editing by Christopher Cushing and Mrigank Dhaniwala)