UPDATE 1-Qatari lender raises $1.6 bln in bonds

* Commercial Bank of Qatar sells 5-yr, 10-yr notes

* Priced at 250 bps over midswaps, 400 bps over midswaps

* Could partly be used to refinance debt (Adds more details, background, comment)

By Rachna Uppal

DUBAI, Nov 11 (Reuters) - Commercial Bank of Qatar COMB.QA has raised $1.6 billion in bonds, the latest Gulf Arab bond issue as demand rises for high-rating emerging market debt.

The lender, Qatar's third-largest by market value, sold $1 billion in five-year notes yielding 250 basis points over midswaps and $600 million in 10-year notes yielding 400 basis points over midswaps, a banker said on Wednesday.

"The whisper is that the 5-year was six times oversubscribed," said the banker, who declined to be identified. "The bonds were priced at a slight discount on par."

State and corporate issuers in the world's largest oil exporting region have raised more than $20 billion by issuing bonds since April.

Commercial Bank of Qatar, which is rated A- by Standard & Poor's and A by Fitch ratings, last came to the market in 2006 with a $500 million bond as part of a $1.5 billion Euro medium term note programme.