Scottish Government bonds: FOI release

Information requested

1. How many civil servants are involved in progressing the initiative?

2. How many government ministers are involved, and who are they?

3. What decisions have been taken thus far?

4. When the first bonds are due to be issued?

5. Whether or not the UK Government has been consulted and if so, how and when?

6. The results of any evaluative exercise(s) into the practicality of issuing Scottish bonds?

7. The projected yield on such bonds?

8. Whether or not the Scottish Government has undertaken any market testing on the likely uptake of bonds?

Response

Responses for each component of your request is held below

1.This initiative is being managed through standard civil service project governance involving a variety of civil servants across Exchequer, Economy and Finance functions. The Borrowing Unit in DG Scottish Exchequer is providing the majority of resource for this project and comprises three civil servants.

2. Decisions on this project have been made variously by the Minister for Public Finance, the Cabinet Secretary for Finance and Local Government, the Deputy First Minister and Cabinet Secretary for Economy and Gaelic, and by the First Minister.

3. The Scottish Government has published two memorandums providing updates on decisions taken thus far. These are provided at the links below:

December 2023: Memorandum on Capital Borrowing Policy and Bonds: Scottish Government capital borrowing and bonds: memorandum - gov.scot

December 2024: Scottish Government Borrowing: Scottish Budget 2025 to 2026: Scottish Government borrowing - gov.scot

4. The Scottish Government's Medium Term Financial Strategy (published in June Scotland’s Fiscal Outlook: The Scottish Government’s Medium-Term Financial Strategy 2025) provided an update on timelines to issuance with a further update on progress to be provided ahead of the 2026-27 Scottish Budget.

5. Scottish Government officials have been engaging with UK Government officials throughout this project.

6. The memorandum published in December 2024 provided an update on the outcome of the initial due diligence phase of this work. The second phase of this due diligence work is ongoing.

7. As detailed in the technical annexes provided in both borrowing memorandums, The Scottish Government will not publicly speculate on the future interest rate attached to any potential bond issuance.

8. Market Testing, as part of the wider due diligence process is ongoing. 

About FOI

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