THE SNP plans to issue Scottish Government bonds have taken a step forward with the appointment of nine banking giants to advise and support their delivery.
The Scottish Government is aiming to raise funding for infrastructure projects by selling bonds to investors with a £1.5 billion programme over the next five years.
Bonds would see the Government lent money by private investors in exchange for fixed interest payments and the return of their principal at a set date.
The nine banks appointed to advise and support on the delivery of the Scottish Government’s programme are:
- Banco Santander
- Barclays Bank Plc
- Citigroup Global Markets Limited
- Deutsche Bank AG
- HSBC Bank Plc
- Merrill Lynch International
- NatWest Markets Plc
- RBC Europe Limited
- Standard Chartered Bank
HSBC Bank Plc, Merrill Lynch International, NatWest Markets Plc, and RBC Europe Limited have been selected to act as the “joint bookrunners” – lead managers of the bonds for the Scottish Government’s inaugural issuance.
Other banks on the framework will have the opportunity to support any subsequent bond sales, the SNP Government said.
Law firm Clifford Chance LLP has been appointed as legal adviser to assist with the inaugural issue, and EY are also advising the Government.
Deputy First Minister Jenny Gilruth said: “This new framework will play an important role in supporting the delivery of the Scottish Government’s bond programme, bringing together a range of market expertise.
“The funding raised from these bonds will help support delivery of the capital infrastructure projects outlined in the Spending Review, while allowing the Scottish Government to diversify its borrowing. Bonds are a standard form of borrowing for governments around the world.
“The Scottish Government’s bond programme is underpinned by high investment grade credit ratings from two global credit rating agencies. These are an endorsement of the strength of the Scottish economy and efforts we are making to drive that forward.”
Last year the Scottish Government was given the same high credit rating as the UK as part of preparations for the bond programme. Moody’s rated the Scottish Government as Aa3 while S&P Global rated it as AA, both identical to the UK’s sovereign rating.
The Scotland Act 2016 devolved powers to Scotland to allow the issuing of government bonds for capital investment.
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.
