Aberdeen issues bonds worth £370m to fund infrastructure
Aberdeen City Council has launched and priced bonds worth £370 million to help deliver a “transformational capital and infrastructure programme”.
The bond issue is the first of its kind by a Scottish local authority.
The proceeds from the bond issue will be used to drive a capital programme which includes investment in infrastructure throughout the city. This includes the city centre masterplan, school and housing developments, roads construction, digital enhancements and a variety of key projects designed to act as a catalyst for economic growth.
The council's leader Jennifer Laing said: "This is a remarkable achievement by this council in securing this investment in the future of our city. Having already secured a credit rating from Moody's Investors Service at Aa2, the issue of the bond sees another step forward by the council in delivering a stable and fiscally prudent financial strategy that is both affordable and sustainable for the future as demonstrated by investor confidence."
"To continue to compete on an international stage, it is vital that we deliver world class facilities for Aberdeen's citizens, businesses and visitors. Today's announcement is a major boost towards that objective."
In its credit opinion report of 24 October 2016, Moody's Investors Service reported that Aberdeen City Council's "internal governance and scrutiny is strong, supported by recent assessments from the Accounts Commission."
Moody's also noted that the "Council has demonstrated a solid financial record for the last five years maintaining a net surplus against budget for the last five years with previous forecasts on expected out turns being realistic."
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This article was published on 3 Nov 2016 (last updated on 7 Nov 2016).