Clifford Chance and Norton Rose Fulbright have landed lead roles on the Indonesian government’s $1.25 billion Islamic green bond issue—a bond known as a sukuk that is structured to comply with Islamic law.

Proceeds of the dollar-denominated five-year notes will be used in renewable energy, green tourism and waste management projects. The Indonesian government has promised that no funds raised would finance fossil-fuel based infrastructure or projects involving burning of peat. The government aims to have renewables account for 25 percent of the country’s energy use by 2025.

Indonesia is currently the world’s biggest exporter of coal used to generate power and relies on coal for more than half of its electricity production. The country is the fifth-largest emitter of greenhouse gases in the world. But the government has said it wants its share of renewable energy to total more than 20 percent by 2026. Its current level is less than 3 percent.

The market for environmentally friendly finance has grown rapidly in recent years, and the issuance of green bonds can be a way for governments to force their ministries to implement environmental projects. In 2017, global green bond issues reached a record $15.5 billion in more than 1,500 deals, according to London-based research firm Climate Bonds Initiative. France, Fiji and Nigeria issued sovereign green bonds.

Clifford Chance Singapore partner Johannes Juette and Dubai partner Qudeer Latif led the team representing the Indonesian government. Indonesian firm Assegaf Hamzah & Partners acted for the sovereign as local counsel.

Norton Rose Fulbright acted for bookrunners CIMB Group Holdings Bhd., Citigroup Inc., Dubai Islamic Bank P.J.S.C., HSBC and Abu Dhabi Islamic Bank with a team led by Singapore partner Vicky Münzer-Jones and supported by Dubai partner Gregory Man and Hong Kong partner David Johnson. Jakarta-based AZP Legal Consultants advised the banks on Indonesian law.

The notes carried a 3.75 percent coupon. Meanwhile, Indonesia also sold a $1.75 billion tranche of 10-year bonds at a 4.4 percent yield. Both tranches were part of a $25 billion sukuk program.