Aviva sets final terms on euro, stg bond -lead

LONDON, May 13 (Reuters) - UK insurer Aviva (AV.L: Quote, Profile, Research) has set final terms on its planned dated subordinated bonds denominated in euros and sterling, an official at one of the banks managing the sale said on Tuesday.

Aviva cut the guidance on a 500 million euro ($773 million) 30-year euro bond, callable after 10 years, to mid-swaps plus 235 basis points compared to initial guidance set at mid-swaps plus 240 basis points to 250 basis points, the official said.

Guidance on the 400 million pound ($779 million) 50-year tranche, callable after 30 years, was also tightened to gilts plus 245 basis points from gilts plus 250 basis points to 260 basis points set initially.

Citigroup, Deutsche Bank and Morgan Stanley are managing the sale of the two-part bond. The bonds are expected to be rated A3 by Moody's Investors Service and A- by Standard & Poor's.

(Reporting by Natalie Harrison)