Today's Edition
LONDON (AFP)
Scotland on Thursday announced plans to issue its first sovereign bonds in the 2026-27 fiscal year, as it looks to raise funds for infrastructure investments.
The bonds - or 'kilts' - would help Scotland demonstrate greater financial sovereignty, with proceeds used to fund capital investment in infrastructure.
"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," said First Minister John Swinney of the pro-independence Scottish National Party (SNP).
The move comes after Scotland received its first credit ratings by Moody's and S&P Global on Wednesday, which rated it Aa3 and AA, respectively, the same as that of the UK.
If re-elected in May, the Scottish government plans to issue £1.5 billion ($2 billion) of bonds over the life of the next parliament.
After the 2014 referendum in which Scots narrowly voted against the country becoming independent from the rest of the UK, a law was passed granting Scotland the power to issue its own bonds to fund investments.
The issue of independence has dominated Scottish politics since the SNP came to power in Edinburgh's devolved parliament in 2007.
Moody's and S&P Global both cautioned that Scotland's credit rating could be downgraded if it took fresh steps towards independence from the UK.
