DUBAI, May 21 (Reuters) - Saudi developer Dar Al Arkan

4300.SE has lowered price guidance on its planned Islamic bond issue, a document from lead bankers on the issue showed on Tuesday.

The company, which is planning to raise at least $300 million from a five-year Islamic bond, revised its guidance lower to around 6 percent from initial yield guidance of 6.25 percent, the document showed.

An update from lead arrangers on Monday indicated that order books were over $500 million.

Dar Al Arkan has picked Bahrain-based Bank Al Khair, Deutsche Bank DBKGn.DE , Emirates NBD ENBD.DU , Goldman Sachs

GS.N and Qatari pair Masraf Al Rayan MARK.QA and QInvest to arrange the potential sale. ID:nL6N0E10M4

(Reporting by Mala Pancholia; Writing by Dinesh Nair; Editing by Praveen Menon)

((dinesh.nair@thomsonreuters.com)(+ 971 4 366 4265)(Reuters Messaging: dinesh.nair.reuters.com@reuters.net))

Keywords: SAUDI DARALARKAN/BOND