Summary
The Scottish government plans to issue its first bonds in the 2026-27 financial year to raise money for infrastructure projects. This decision follows receiving the same credit ratings as the UK from major credit rating agencies. The issuance of these bonds depends on factors like the outcome of the upcoming Holyrood election.
Key Facts
- The Scottish government plans to issue its first bonds in 2026-27.
- Bonds allow the government to borrow money from investors in exchange for regular interest payments.
- The decision follows credit ratings from Moody's and S&P Global, matching the UK's sovereign rating.
- The bonds aim to fund infrastructure projects in Scotland.
- The issuance of bonds depends on the results of the Holyrood election and other factors.
- Moody's and S&P noted that Scotland's credit rating could be cut if independence becomes more likely.
- The Scottish government's bonds are nicknamed "kilts."
- Scotland has had the power to issue bonds since 2016 but has mainly borrowed from the UK National Loans Fund.
