Aberdeen Council issues market bonds worth £370m

Aberdeen City Council has issued bonds worth �370m
Aberdeen City Council has issued bonds worth �370m
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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.

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.

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.”