Mortgage lender Housing Development Finance Corp on Wednesday opened a 5-billion-rupee ($110 million) bond

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issue, two sources familiar with the transaction said.

The issue is expected to close later in the day, they said. The bonds mature on May 6, 2011 and are rated AAA by agencies CRISIL and ICRA.

Details on the coupon rate were not available. "There are 3 to 4 investors, but the banking is yet to take place," one source told Reuters. Deutsche Bank is the arranger for the transaction.