Indonesia's sovereign sukuk attracts $10 billion order book

The Indonesian government raised $1.5 billion worth of Islamic bonds on Tuesday, attracting the largest order book ever achieved for a sovereign sukuk from southeast Asia. The 10-year sukuk drew strong investor demand - order books were worth $10.2 billion - helping reduce the yield of sukuk which had originally started in the vicinity of 4.625 percent on Monday, before being trimmed to 4.35 percent. Indonesia's sukuk kickstarts what looks to be a busy month for sovereign issuance, with Luxembourg, Hong Kong and South Africa conducting investor meetings ahead of their respective transactions. Indonesia's sukuk was rated Baa3 by Moody's. CIMB, Emirates NBD Capital, HSBC and Standard Chartered acted as lead managers.