The Scottish Government said on Monday it is “making good progress towards” its first bonds issuance in 2026-27.
First Minister John Swinney told financial services firms in London of the next steps for the £1.5 billion bonds programme, which will provide financing for major capital projects across Scotland.
Procurement for book runners — the banks to act as joint lead managers for the bonds — and legal advisers, will go live this week.
The firms selected will support delivery of a £1.5 billion bonds programme over five years, subject to the outcome of the Scottish election.
“Last year the Scottish Government was given the same high credit rating as the UK, and better than Spain, Italy and Japan,” said the Scottish Government.
“The strength and diversity of Scotland’s economy, its strong institutional framework, as well as the Scottish Government’s prudent financial management and low levels of debt were highlighted in the credit agency reports.”
Swinney said: “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.
“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.
“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.”
Swinney also signed a “renewed partnership” agreement between the Scottish Government and the City of London, focussed on “delivering investment” to Scotland.
While in London, the First Minister will promote Scotland as a financial services hub, showcase current large ticket capital investment opportunities and also announce the next stage of the Scottish Government’s bonds programme.
The First Minister added: “Scotland is a fantastic place to do business – and is the UK’s second largest financial hub after London. We have depth and strength across the full spectrum of financial and professional business services, and the ambition to lead in areas that will shape the future of finance.
“From large-scale infrastructure to innovative net zero technology, Scotland offers a stable, well-supported environment for investors looking to create lasting impact.
“We are committed to working with global partners, including in the City of London, to advance the opportunities which will help Scotland to grow. Through working collaboratively, the City of London can support Scotland’s ambition to grow a modern, thriving and sustainable financial centre that builds on our heritage and supports our wider economic transformation.
“Our partnership is also beneficial to the City of London Corporation which has long recognised the value of Scotland’s contribution to the United Kingdom’s standing as a world class financial services centre, with Scotland offering distinctive specialisms and strengths in banking, asset management and servicing, insurance and pensions and fintech.”