DUBAI, April 29 (Reuters) - Bahrain Telecommunications Co (Batelco) BTEL.BH plans to issue a $650 million seven-year bond on Monday, arranging banks said, and has released early price talk for the deal.

Initial price guidance was issued at a spread of 350 basis points over U.S. Treasuries, said an announcement from lead arrangers BNP Paribas BNPP.PA and Citigroup Inc C.N .

The bond for Batelco, 78 percent owned by the Bahraini government, is expected to cover part of a funding package for its $1 billion acquisition of Cable & Wireless Communications'

CWC.L assets in Monaco and other island states.

(Reporting by Rachna Uppal; Editing by Andrew Torchia)

((rachna.uppal@thomsonreuters.com)(+971 4 366 4240)(Reuters Messaging: rachna.uppal.reuters.com@reuters.net))

Keywords: BAHRAIN BATELCO/BOND