Gulf International Bank, owned by Saudi Arabia's sovereign wealth fund, expects to raise $500 million from the sale of dollar-denominated five-year senior unsecured bonds, a document from one of the banks arranging the deal showed on Wednesday.

The lender has set the spread for the debt sale at 130 basis points (bps) over U.S. Treasuries, tighter than initial guidance of about 150 bps, the document shows.

The deal attracted more than $1.1 billion in demands, with pricing and allocation expected later in the day, the document added.

(Reporting by Shamsuddin Mohd Editing by David Goodman )