Aberdeen Council issues market bonds worth £370m

Aberdeen City Council has become the first local authority in Scotland to raise money through the capital markets after issuing stock market bonds worth £370 million.

Aberdeen City Council has issued bonds worth £370m

The move comes after credit rating agency Moody’s gave Aberdeen an Aa2 rating last month.

Senior figures at the council said the money would go towards funding infrastructure schemes.

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The authority has the backing of the Scottish government, which believes other councils could go down a similar route.

Council leader Jennifer Laing said: “This is a remarkable achievement by this council in securing this investment in the future of our city.”

Councillor Willie Young, who is the city’s finance, policy and resources committee convener, said: “The bond issue is part of our strategy to maintain a diversified funding portfolio that provides us with greater financial flexibility.

“This flexibility will help Aberdeen anchor its status as both a Global Energy Hub as well as ensuring that we have the infrastructure required to attract world class businesses as we seek to broaden and diversify our economic base.”