First Minister John Swinney has declared a 'very proud day for Scotland' following the announcement that the Scottish Government will begin issuing its own bonds next year.
The bonds, designed to attract investment for crucial infrastructure projects, come after two major global agencies awarded Scotland the same credit rating as the UK overall.
Strong Foundations for Investment
Moody's awarded a AA rating, while S&P Global gave an Aa3. Mr Swinney stated this achievement reflects the 'economic strength of Scotland, the strength of our financial management, and the strength of the financial institutions within Scotland'.
He confirmed the government plans to issue bonds up to a value of £1.5 billion over the course of the next parliamentary term. This will provide a solid foundation for investment in Scotland's capital programme.
Funding the Future: What Comes Next?
While the First Minister highlighted that areas like housing and the drive to net zero could benefit, he did not specify individual projects that would receive funding.
He told PA Media that the government will set out its detailed investment programme in January, outlining the specific projects to be advanced in the coming years.
'We need to have the funds to underpin that programme,' Mr Swinney explained, 'and what the announcement overnight from the credit rating agencies demonstrates is that Scotland has every potential to attract investment on international financial markets.'
Building on a Long-Term Strategy
The move fulfils work initiated by former First Minister Humza Yousaf in 2023, who aimed to issue bonds before the end of the current Scottish Parliament session.
The strategy was also recommended by the Scottish Government's own investor panel as a means to raise Scotland's profile and attract investment.
Angus Macpherson, Chairman of Noble and Co and former co-chair of the panel, said he was 'greatly encouraged by the progress' and that it 'demonstrates they are serious about becoming a more investor friendly destination'.
Finance Secretary Shona Robison emphasised that these 'firm foundations' for Scotland's economy would be maintained 'in whatever constitutional arrangements we have in the future', assuring that any transition would be carefully managed to protect investor confidence.
The final plans for the bond issuance will be subject to market conditions at the time.
