Nine banks have been appointed to a framework that will advise and support on the delivery of the Scottish Government’s £1.5 billion bonds programme over the next five years.

HSBC, Merrill Lynch International, NatWest Markets and RBC Europe have been selected to act as the joint bookrunner for the inaugural bond issuance.

Other banks on the framework Banco Santander; Barclays, Citigroup Global Markets, Deutsche Bank and Standard Charted Bank, will have the opportunity to support any subsequent bond sales. Clifford Chance has been appointed as legal adviser, while EY is advising the government.

Deputy First Minister Jenny Gilruth said: “This new framework will play an important role in supporting the delivery of the Scottish Government’s bond programme, bringing together a range of market expertise.

“The funding raised from these bonds will help support delivery of the capital infrastructure projects outlined in the Spending Review, while allowing the Scottish Government to diversify its borrowing. Bonds are a standard form of borrowing for governments around the world.

Sign up for our free newsletter to receive the day’s breaking news headlines directly into your email box

“The Scottish Government’s bond programme is underpinned by high investment grade credit ratings from two global credit rating agencies. These are an endorsement of the strength of the Scottish economy and efforts we are making to drive that forward.”

The Scotland Act 2016 devolved powers to Scotland to allow the issuing of government bonds for capital investment. 

In 2023 the Scottish Government’s Investor Panel recommended making bonds available to market as a means of raising Scotland’s profile and attracting investment. 

Last year the Scottish Government was given the same high credit rating as the UK as part of preparations for the bond programme.

All proceeds from a bond issuance would be used exclusively for capital investment in line with the capital borrowing powers outlined in the Fiscal Framework agreement between the Scottish and UK Governments.  Some analysts have questioned the relatively modest sum being raised.