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announcement of issuance plans scottish government Bonds hails ‘a very proud day for Scotland’ first minister Said.
john swinney On Thursday he said Government Bond issuance will begin next year to attract investment for “major infrastructure” projects.
But he was unable to say how the extra money would be spent, telling the PA news agency that capital plans would be outlined in January.
This comes after two global agencies gave scotland Credit ratings similar to those of the UK, with Moody’s providing AA and AA3 from S&P Global.
The First Minister told PA on Thursday: “This is a very proud day for Scotland as we achieve the best possible credit rating within the United Kingdom from two of the world’s leading credit rating agencies, Moody’s and Standard & Poor’s.
“It is a reflection of the economic strength of Scotland, the strength of our financial management and the strength of the financial institutions within Scotland, and it gives us a really strong basis for issuing up to £1.5 billion worth of bonds over a number of years over the next parliamentary term, which can underpin investment in Scotland’s capital programme.”
The First Minister said the bond issue – which would allow investors to buy Scottish Government debt – would give the country “another option” to attract investment.
While she said housing and the net zero movement could benefit from the bond, the First Minister would not go on to specific programs that would be financed.
“The government will set out in the investment program in January exactly the projects we are pursuing over the next few years,” he said.
“But clearly we need the money to underpin that program and the announcement overnight from the credit rating agencies shows that Scotland has great potential to attract investment in the international financial markets and we can use those resources to support our capital programme.”
Specific plans for the bond issuance will be subject to market conditions at the time, the First Minister said.
Former First Minister Hamza Yousaf initiated preliminary work with the aim of issuing the bonds before the end of the current Scottish Parliament session in 2023.
It came as advisers to the Scottish Government’s investor panel recommended making bonds available on the market as a means of raising Scotland’s profile and attracting investment.
Angus Macpherson, chairman of financial advisory firm Noble & Co and former co-chair of the investor panel, said he was “very encouraged by the progress the Scottish Government has made in securing a credit rating to raise Scotland’s profile in the international capital markets”.
Mr McPherson said: “This is a positive step and shows they are serious about becoming a more investor friendly destination.
Scottish Finance Secretary Shona Robison said the credit rating would be “absolutely fundamental to increasing investor engagement in Scotland”.
He also stressed that the “strong foundations” of Scotland’s economy would remain in “whatever constitutional arrangement we have in the future”.
Speaking on BBC Radio Scotland, he said: “Any transition towards Scotland becoming an independent country will be carefully managed to maintain investor confidence, protect Scotland’s public finances and support long-term economic prosperity.”