TCorp, the investment and financial management partner for the NSW public sector, is launching a new bond.
The 1.25% sustainability bond issue proceeds are earmarked to finance a combination of green and social assets.
The pool of projects has already been approved by the NSW Government.
It is the second bond to be issued under the NSW Sustainability Bond Programme after the Green Bond was released a year ago.
TCorp chief executive David Deverall said: "We are helping the NSW Government deliver $93bn of infrastructure investment for the state in a sustainable way."
"Our sustainability bond programme offers bonds that are consistent with the NSW Government's environmental and social objectives and are aligned to relevant global standards and principles.
"Sustainability outcomes of the projects underpinning our programme are reported on an annual basis and independently audited."
The projects earmarked include storm water improvement projects as well as a transport access program and schools program.
The projects have been added to an asset pool comprising of the Sydney Metro Northwest, Newcastle Light Rail and Lower South Creek Treatment Programme.
TCorp head of funding and balance sheet Fiona Trigona said: "With our intention to issue a Sustainability Bond this year, we engaged Sustainalytics to review our framework and they have cited it is credible, impactful and aligning with the Sustainability Bond Guidelines 2018.
"In addition, EY has provided independent assurance over our programme and the assets in our pool."
ANZ, Bank of America Merrill Lynch and National Australia Bank will act as joint lead managers on for the transaction.