Feb 28 (Reuters) - Saudi-based Islamic lender Alinma Bank 1150.SE has sold $1 billion in U.S. dollar-denominated perpetual Additional Tier 1 sukuk non-callable for 5.5 years, a lead manager document showed on Wednesday.

The yield for the debt issuance was set at 6.500%, narrowed from 7% released earlier in the day after the orders topped $4.25 billion, the document said.

Proceeds from the debt sale will be used for improvement of Tier 1 capital and general banking purposes, the lender said in a bourse filing.

Abu Dhabi Islamic Bank ADIB.AD, Alinma Investment Company, Emirates NBD Capital, J.P. Morgan, MUFG and Standard Chartered Bank STAN.L were selected to work on the debt transaction as joint bookrunners and joint lead managers, the document said

(Reporting by Mohammad Edrees)

((Mohammad.Edrees@thomsonreuters.com;))