Dubai-listed Mashreqbank has started taking bids for the sale of dollar-denominated perpetual non-callable for 5.5-year additional tier notes, an arranging bank's document showed on Monday.

The indicative price for the AT1 debt sale has been placed around high 7% with pricing to take place later in the day, the document, which was reviewed by Reuters, said.

The lender plans to raise $500 million from the sale of perpetual debt, which will provide necessary financing for its general corporate purposes and to further strengthen its capital base, the document added.

The Dubai lender has picked Abu Dhabi Commercial Bank , Al Ahli Bank of Kuwait (DIFC Branch), BofA Securities, Citi, Emirates NBD Capital, First Abu Dhabi Bank, Kamco Investment Company, Mashreq and Mizuho as joint lead managers and joint bookrunners, the document said.

(Reporting by Mohammad Edrees; Editing by Muralikumar Anantharaman)