THE Scottish Government is making good progress towards issuing its first bonds in the next financial year, John Swinney has told financial services firms in London.
Speaking at an event at Scotland House London, the First Minister announced the next steps for the £1.5 billion bonds programme, which he said will provide financing for major capital projects across Scotland.
This included that procurement for book runners – the banks to act as joint lead managers for the bonds – and legal advisers will go live this week.
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The firms selected will support delivery of the programme over five years, subject to the outcome of the Scottish election.
It comes after international ratings agencies set a credit rating for Scotland last year that matched the UK and was better than major European and global economies such as Spain, Italy and Japan.
The Moody’s report, however, included Scottish independence as a possible factor which could see Scotland’s credit rating downgraded.
Finance Secretary Shona Robison pictured alongside John Swinney in the Scottish Parliament (Image: Jeff J Mitchell)
“Our intention is to make Scotland the most attractive destination for investment in the United Kingdom and our bonds programme is one of the ways we will do that,” Swinney said.
“We also want to diversify our sources of borrowing so as to maximise value for money for Scotland’s taxpayers. A Scottish Government bond issuance will enable us to structure our debt more effectively – using the powers we have to borrow better, not more.
He added: “Whilst specific issuance plans will be subject to market conditions closer to the time, these bonds will raise the funding needed to support delivery of the capital infrastructure projects outlined in our recently published Spending Review and Infrastructure Investment Pipeline.”
In 2023 the Scottish Government’s investor panel recommended making bonds available to market as a means of raising Scotland’s profile and attracting investment.