HONG KONG - Indonesia will raise US$650 million ($977.8 million) in its first-ever sale of global Islamic bonds, a source with direct knowledge of the deal said on Thursday.

Indonesia also lowered its guidance for the five-year dollar-denominated sukuk sale to 8.8-9 percent from the guidance at around 9.25 percent provided to investors on Wednesday, said the source.

He declined to be identified because he was not authorised to talk publicly about the sale.

The country has attracted some US$4-$5 billion in orders, the source added, without providing a more specific number.

Pricing is due later in the day.

Barclays Capital, HSBC and Standard Chartered are the lead managers for the sale.