Indonesia launched a five-year "green" sukuk bond, making it the first Asian country to issue green bonds internationally, Reuters reported.

Term sheets seen by Reuters suggest that the country is aiming to raise at least $300 million in a deal that will be in line with Islamic finance norms. Any proceeds from green bond issuances are invested in environmentally friendly projects.

A 10-year sukuk bond is also being marketed at the same time.

Based on initial price guidance, the green bonds would carry a coupon of 4.05% and the 10-year notes 4.70%, according to the report.

CIMB, Citigroup, Dubai Islamic Bank PJSC, HSBC and Abu Dhabi Islamic Bank are book runners for the green bond transaction. The Indonesian government has not specified how it intends to use the proceeds from the sale, Reuters reported.

The country is seen to be in a better position to borrow more cheaply in international markets after S&P lifted its ratings to investment grade in 2017. Indonesia now has investment-grade ratings from all three major rating agencies.