- Investment to fund key infrastructure projects.
The Scottish Government will take steps to issue its first ever
bond to finance key infrastructure in Scotland, the First
Minister has announced.
First Minister has commissioned initial
work including due diligence assessments with the
aim of making the bonds available to the market by the end
of the current parliamentary session.
Steps will include undertaking detailed analysis to ensure value
for money can be achieved and further consideration of the
potential investment opportunities in Scotland.
The First Minister said:
“Scotland has a wealth of investment opportunities. Issuing a
bond will help raise Scotland’s profile and engagement with
international investors to attract investment.
“This will be a first for the Scottish Government and is a
significant undertaking. The next steps will involve the
commissioning of detailed analysis and necessary due diligence.
Subject to the successful completion of that process, the first
bond will issue by the end of this parliamentary session.
“This is an exciting opportunity to use the powers we already
have to invest in infrastructure for Scotland’s future. That
investment in infrastructure is key to supporting the three
priorities I have outlined for the Scottish Government over the
next three years – delivering high quality public services,
boosting a green and thriving economy and ensuring equality of
opportunity for everyone.”
Background
Bonds are the standard form of borrowing for governments around
the world and support spending including on major infrastructure
projects, with buyers owed the value of the bond plus interest
over a specific period of time.
The Scotland Act 2016 devolved powers to Scotland to allow the
issuing of government bonds for capital investment. Following
the review of the fiscal
framework, the Scottish Government’s capital borrowing limits
will increase with inflation from their current levels of £450
million per annum and £3 billion cumulatively.
