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)