(Bloomberg) -- The Kingdom of Denmark will sell a sovereign green bond for the first time next month to help the Nordic nation meet one of the world’s most ambitious climate targets.

The announcement of an inaugural 10-year green bond comes at a time of insatiable investor demand for government debt tied to environmental, social and governance (ESG) projects. Recent sovereign green issues for Italy, the U.K. and the European Union were among the most-subscribed deals in the region, and even Saudi Arabia has plans to enter the market.

For Denmark, it is hoped that the proposed financing will help the Nordic nation meet a stated goal to reduce carbon emissions compared with 1990-levels by 70% no later than 2030.

Read More: Denmark Plans to Issue First Ever Green Bond Next Month

Signe Krogstrup, one of two deputy governor’s at the Danish central bank, said she’s pleased that the country can contribute to support the development of the green capital market with the new issuance.

“The market for green bonds and green financing has grown significantly in recent years,” Krogstrup said in a statement. “The financial markets play an important role in the green transition and the path toward a more sustainable economy.”

The proposed bonds will be issued as a so-called “twin bond” meaning they will have the same maturity, interest payment dates and coupon as one of the government’s existing on-the-run issues. This will improve liquidity as investors can switch to the conventional government bond from the green issue at any time, according to the statement.

BNP Paribas, Danske Bank and Nordea have acted as advisors on Denmark’s green bond, with Nordea in the role of structuring adviser. The Danish finance ministry said as much as 12 billion kroner ($1.8 billion) could be raised from next month’s landmark issue.

Read More: Denmark Edges Closer to Historic Decision on Green-Debt Issuance

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