CITIC CLSA replaces Goldman Sachs for HNA unit $200 mln pre-IPO funding -sources

* CITIC CLSA arranging convertible bond sale -sources

* Bond likely to carry 5 to 7 pct coupon -sources

* Pactera considering Hong Kong IPO -sources

* Fundraising comes as Pactera faces U.S. lawsuit

HONG KONG, Dec 20 (Reuters) - CITIC CLSA Securities has been hired by a unit of HNA Group Co Ltd to work on pre-IPO fundraising, people close to the matter said, just four months after Goldman Sachs Group Inc ended its involvement over compliance concerns.

Hong Kong-based CITIC CLSA is arranging the sale of an up to $200 million convertible bond for Beijing-based IT outsourcing firm Pactera Technology International Ltd, which HNA bought from private equity firm Blackstone Group LP for $675 million last year, three people with knowledge of the matter told Reuters.

Pactera is also considering an initial public offering (IPO) in Hong Kong, said two of the people, who declined to be identified as the deals are confidential.

Goldman began due diligence on HNA and Pactera in August after winning a mandate to lead the funding round. It later pulled out because the deal did not meet its due diligence standards, Reuters previously reported.

CITIC CLSA, wholly owned by CITIC Securities Co Ltd - itself a unit of Chinese state-owned conglomerate CITIC Group Corp - declined to comment.

HNA said it would not comment on subsidiaries' operations beyond saying Pactera had not begun the process of issuing a convertible bond as far as it understood. Pactera did not respond to a request for comment.

Privately owned HNA, which has entered into $50 billion of deals over the last two years, has been under increased scrutiny since a July announcement outlining its ownership showed two shareholders were proxies for founding executives.

The issue raised questions in the banking industry of which lenders would, or would not, work with the conglomerate.

Last week, HNA said it has cooperative relationships with several Chinese and international banks, naming JPMorgan Chase & Co, UBS Group AG and Barclays PLC.

The bond being arranged by CITIC CLSA is likely to carry a coupon of 5 percent to 7 percent with a conversion premium of 10 percent to 20 percent, two of the people told Reuters. CITIC CLSA has been speaking with potential investors for the bond, of which over half of the proceeds will be used to repay Pactera's overseas debt, they said.

The fundraising comes as HNA and Pactera face a lawsuit in the United States. Last week, U.S. software engineer Ness Technologies Inc alleged that HNA did not adequately answer questions about its ownership during a U.S. review of takeovers by foreign companies, thereby causing the failure of Pactera's $325 million purchase of Ness' Jersey Holding Corp.

HNA described the lawsuit as "baseless and without merit". Pactera said it had invested significant time and effort in meeting U.S. regulatory requirements.

(Reporting by Kane Wu, Julie Zhu and Fiona Lau; Editing by Jennifer Hughes and Christopher Cushing)