UPDATE 2-Emirates launches $1 bln 5-year bond

* Bond raised to $1 billion after strong demand

* Pricing at tighter end of early guidance

(Adds confirmation with pricing)

DUBAI, June 1 (Reuters) - Fast-growing Dubai-based airline Emirates [EMIRA.UL] launched a five-year $1 billion bond in an upsized offering at the lower end of its initial price guidance.

The company said the bond launched at 330 basis points over midswaps, as reported earlier by Reuters, with a coupon of 5.125 percent.

Final price guidance for the bond had been in the range of 330 basis points to 337.5 bp over midswaps and carried a reoffer price of 99.904.

The deal was increased to $1 billion on strong demand. Reuters earlier reported that the airline was planning to raise $750 million from the sale. [ID:nLDE74U1D7]

"This latest issue from Emirates has received an overwhelmingly positive response from a very wide range of investors, which is indicative of our financial strength," said Chief Executive Sheikh Ahmed bin Saeed al-Maktoum.

Three market sources said order books for the bond were in excess of $5 billion. The bond is expected to perform well in secondary trading.

"This is a very strong showing by the airline and highlights the improved liquidity in the markets now. This kind of investor appetite may prompt more Gulf corporates to tap the market," said a fund manager based in the region.

Emirates, one of the world's fastest-growing airlines, wrapped up roadshows, which began in Hong Kong on May 23, in Switzerland on Monday.

Proceeds will be used for general corporate financing purposes, Emirates said.

Lead arrangers for the issue are HSBC (HSBA.L), Morgan Stanley (MS.N), Deutsche Bank (DBKGn.DE) and Emirates NBD ENBD.DU. (Reporting by Rachna Uppal; Editing by Reed Stevenson and David Cowell)