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UPDATE 1-Qatar's QIIB to price $700 mln sukuk Thursday

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* Sukuk launched at 190 bps over midswaps

* Healthy demand for deal * Pricing Thursday

(Reworks lead, adds launch pricing)

DUBAI, Oct 11 (Reuters) - Qatar International Islamic Bank(QIIB) launched a $700 million sukuk on Thursday,arranging banks said, at the lower end of revised price guidancein a reflection of healthy demand for the deal.

The five-year Islamic bond was launched at a spread of 190basis points over midswaps. Price guidance was earlier set atbetween 190-195 over midswaps, tighter than indicated, withorder books reportedly at $2.7 billion on Wednesday afternoon.

HSBC , Standard Chartered and QNB Capital

are mandated arrangers on the deal. Investor meetingsconcluded in London on Wednesday.

QIIB's sukuk would follow an issue from Qatar Islamic Bank

earlier this month, which raised $750 million at aprofit rate of 2.5 percent.

(Reporting by Mala Pancholia; Writing by Rachna Uppal; Editingby Praveen Menon)

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

Keywords: QIIB SUKUK/