UPDATE 1-Emirate of Sharjah to raise $750 mln in sukuk

(Updates with size, final spreads)

DUBAI, Oct 16 (Reuters) - Sharjah, the third-largest emirate
of the United Arab Emirates, is set to raise on Wednesday $750
million in 10-year sukuk, or Islamic bonds, a document issued by
one of the banks leading the deal showed.

Sharjah started marketing the notes at around 185 basis
points over mid-swaps earlier on Wednesday but hefty demand
meant it was able to tighten spreads to 155 basis points.

It received orders in excess of $3.2 billion, according to
the document.

The debt sale comes amid a flurry of U.S. dollar-denominated
debt issues in the Gulf, as governments and companies take
advantage of low global rates to raise cheap debt and atrract
yield-seeking buyers.

HSBC is coordinating the sukuk sale, which is
expected to close later on Wednesday.

Other banks working on the deal are Dubai Islamic Bank
, Emirates NBD Capital, Sharjah Islamic Bank
and Standard Chartered Bank.
(Reporting by Davide Barbuscia; Editing by Christian
Schmollinger and Alexandra Hudson)