JAKARTA: Indonesia's first-ever global sukuk (Islamic bonds) issuance was more successful than anticipated, further reducing dollar supply concerns, Citi says.

The sale of five-year sukuk last week saw surprisingly strong demand, with orders of US$4.7 billion, seven times the initial $650 million debt offered.

"We were surprised by the strength of the reception given that the global sukuk market has been relatively dormant, and Indonesia was entering pretty un-chartered territories since Lehman's collapse," Citi analysts Johanna Chua and Leon Hiew said Monday.

According to Citi, the sukuk was the largest since the Dubai port deal in June 2007 and the first dollar sukuk from a country outside the GCC since Pakistan in 2005. - JP