Sept 3 (Reuters) - The Indonesian government raised $1.5billion worth of Islamic bonds on Tuesday, attracting thelargest order book ever achieved for a sovereign sukuk fromsoutheast Asia, the finance ministry said.
The 10-year sukuk drew strong investor demand - order bookswere worth $10.2 billion - helping reduce the yield of sukukwhich had originally started in the vicinity of 4.625 percent onMonday, before being trimmed to 4.35 percent.
Indonesia's sukuk kickstarts what looks to be a busy monthfor sovereign issuance, with Luxembourg, Hong Kong and SouthAfrica conducting investor meetings ahead of their respectivetransactions.
In June, Britain became the first Western country to sellsukuk, raising 200 million pounds from a five-year deal,attracting 2.3 billion pounds in orders.
Year-to-date, issuance of sukuk globally has reached $85.9billion through 456 deals, compared to $74.9 billion through 558deals in the same period last year, according to data fromZawya, a Thomson Reuters company.
Pakistan is also aiming to issue a sukuk worth as much as $1billion later this year, but those plans have been delayed bypolitical turmoil.
Indonesia's sukuk, rated Baa3 by Moody's, was sold toinvestors in the Middle East (35 percent), Asia (30 percent),Europe (15 percent) and the U.S. (20 percent), the financeminstry said.
CIMB, Emirates NBD Capital, HSBC and Standard Chartered acted as lead managers. (Reporting by Gayatri Suroyo; Writing by Bernardo Vizcaino;Editing by Shri Navaratnam)