Danmarks Nationalbank, the central bank of Denmark announced today the completion of its inaugural green bond issuance, raising kr. 5 billion ($570 million) to fund the government’s expenditures and investments in areas including renewable energy and green transportation.

According to the central bank, demand for the 10-year bond was very strong, and the was deal nearly 5x oversubscribed with an order book of approximately $2.6 billion. Demand for the bond appears to have been driven by the sustainability-related aspects of the offering, with the bond generating significantly favorable pricing over similar conventional issues.

Highlighting the value placed on the bond’s sustainability aspects, Denmark issued the bond as part of a “twin bond” offering, pairing it with the issuance of another 10-year bond with the same maturity, interest payment dates and coupon rate.

The bond was priced at an effective yield of 0.14%, indicating a 5 basis point premium to its 10-year conventional twin.

The bond was issued under Denmark’s Green Bond Framework, which outlines eligible areas for investment of the proceeds from green bond offerings. Under the framework, targeted areas of investment will include the production of renewable energy, including wind and solar energy, and support the green transition of the Danish transport sector.

The offering is likely the first in a series for Denmark, as the central bank has announced that it expects green bond issuance volume of up to kr. 15 billion in 2022.

The offering follows the introduction earlier this year by Denmark’s Prime Minister Mette Frederiksen of a set of climate initiatives for the country, including plans to accelerate green domestic aviation and to tax carbon emitting companies. Denmark’s current climate targets include achieving 70% emissions reductions by 2030 and climate neutrality by 2050.