FM Announces Bond Issuance Plan In Effort To Revive SNP Support

On 17 October, Scotland's First Minister Humza Yousaf announced that the devolved gov't in Holyrood intends to launch the first-ever Scottish gov't bonds. Yousaf: "Issuing a bond will help raise Scotland’s profile and engagement with international investors to attract investment. [...]. 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." The 2023-23 session of the Scottish Parliament ends on 18 February 2024.

• The Scottish Gov't has had the power to issue debt since the passage of the Scotland Act 2016, which came in the wake of the 2014 Scottish independence referendum.
• FT: "Under the existing framework, the government at Holyrood can raise up to £450mn per year and £3bn in total. It has been reluctant to go to the bond market because it would likely have to pay a premium above the borrowing costs the UK government does when it issues gilts."
• Humza's pro-independence Scottish National Party (SNP), which has governed Scotland since 2007, is struggling with flagging opinion poll support and riskslosing a sizeable numberof its 43 House of Commons seats in the next election. As such, the party is seeking to both bolster domestic support via infrastructure spending while at the same time making efforts to build credibility on international markets ahead of any future independence push.