Government bonds to issue in first for Scotland

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 Humza Yousaf 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.”


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.


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