Scotland is preparing to enter the international bond markets for the first time after securing credit ratings that match the UK Government and outperform a number of major global economies.
First Minister John Swinney confirmed that the Scottish Government is on track to issue its first national bonds in the 2026 to 2027 financial year, following assessments by Moody’s and S&P Global which placed Scotland on the same level as the UK and ahead of countries such as Spain, Italy and Japan.
The launch will form part of a planned one point five billion pound bond programme over the life of the next parliament, subject to the outcome of the Scottish Parliament election, annual borrowing needs and wider market conditions.
The move marks a significant step in Scotland’s financial development after more than twenty five years of devolution, giving the Government a new tool to fund major infrastructure projects.
Mr Swinney said the strong ratings reflected the stability of Scotland’s public institutions and the discipline of its financial management.
“The Scottish Government’s high credit ratings are testament to Scotland’s strong institutions, track record of responsible fiscal management and pro business environment,” he said.
“We are therefore now on track to commence the bond programme from 2026 to 2027, with the proceeds used to fund capital investment in key infrastructure.”
He said the new borrowing powers would help Scotland use the levers it has more effectively.
“This is about using the powers we have to borrow better, not more,” he said.
“It reflects the maturity of Scotland’s public finances after more than twenty five years of devolution.”
Mr Swinney said the programme also represented a wider shift in Scotland’s approach to long term economic planning.
“It is the latest step in building the institutions and tools Scotland needs for a prosperous future where our country takes responsibility for its own decisions,” he said.
Officials will now begin engagement with banks to identify joint lead managers for the first issuance, ensuring the next Scottish Government can move quickly once market conditions allow.
The announcement follows a recommendation by the Scottish Government’s Investor Panel in 2023 which encouraged ministers to issue bonds as a way to grow Scotland’s international financial profile and attract long term capital investment.
Angus Macpherson, Chairman of financial advisory firm Noble and Co and former co chair of the Investor Panel, said the latest progress signalled Scotland’s intent to become a more prominent player in global markets.
“I am greatly encouraged by the progress the Scottish Government is making in achieving a credit rating to raise Scotland’s profile in the international capital markets,” he said.
“This is a positive step forward and demonstrates they are serious about becoming a more investor friendly destination.”
The first bonds issued under the Scottish programme are expected to support capital projects including transport links, public buildings, digital infrastructure and other long term investments designed to boost economic growth.
With the ratings secured and preparatory work now under way, Scotland is positioning itself for a new financial chapter built on credibility, stability and international confidence.
