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

* 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 guidance in a reflection of healthy demand for the deal.

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

HSBC , Standard Chartered and QNB Capital

are mandated arrangers on the deal. Investor meetings concluded in London on Wednesday.

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

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

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

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

Keywords: QIIB SUKUK/