Indonesia sukuk catches market momentum

The Republic of Indonesia swept through its funding target for the first half of 2016 on Monday with an upsized $2.5 billion sukuk issue.

As a result of the split- and 10-year deal, the sovereign has now raised 64% of the $9.35 billion it is targeting from international markets in 2016, or 2% more than the 62% it was hoping to raise by the end of June. 

The Baa3BBB-BB rated credit has been one of the chief beneficiaries of the market’s strong momentum following the Fed's decision to slow the pace of interest rate rises last week. As a result, the order book...