* Launch guidance at 6.4 percent, tighter than indicated

* Pricing on Thursday; existing sukuk yields tighter

* Emaar shares rise 1.3 pct on Dubai bourse

(Adds details, share price)

DUBAI, July 12 (Reuters) - Dubai real estate developer Emaar Properties EMAR.DU launched a $500 million seven-year sukuk at a profit rate of 6.4 percent on Thursday, arranging banks said.

Emaar, builder of the world's tallest tower, Burj Khalifa, is seeking to take advantage of tightening spreads to raise cheap financing as well as strong global demand for sukuk.

Final pricing is due later in the day, with order books said to be in excess of $4.5 billion. Pricing at launch for the sukuk was tighter than guidance released on Wednesday, signalling strong appetite for the deal. ID:nL6E8IB1ZT

Yields on Emaar's existing $500 million sukuk, issued early in 2011 at 8.5 percent and maturing in 2016 KY058684058=RRPS have tightened since the borrower announced pricing for its latest issue.

The outstanding sukuk was bid at 109.5 cents on the dollar on Thursday morning, to yield about 5.8 percent, tighter from about 6.1 percent on Tuesday, according to Thomson Reuters data.

Market sources said the existing 2016 deal offers more value compared with the upcoming 2019 bond which carry an extended three-year maturity.

Abu Dhabi Islamic Bank ADIB.AD , Standard Chartered Plc

STAN.L , HSBC Holdings HSBA.L , Abu Dhabi's Al Hilal Bank, Qatar's Barwa Bank, Emirates NBD ENBD.DU , Dubai Islamic Bank

DISB.DU and Noor Islamic Bank are mandated on the deal.

Shares in Emaar, which is 32 percent owned by the Dubai government, were trading 1.3 percent higher at 0800 GMT on the Dubai bourse.

(Reporting by Rachna Uppal and Mala Pancholia; Editing by Dinesh Nair)

((rachna.uppal@thomsonreuters.com)(+971 4 366 4240)(Reuters Messaging: rachna.uppal.reuters.com@reuters.net))

Keywords: EMAAR SUKUK/