DFSED-SG Bond Legal Counsel

The Scottish Government is seeking to appoint a legal adviser to assist in accessing the sterling public bond market. From 2016, the Scottish Government’s annual limit for Capital Borrowing has been GBP 450 million, with a cumulative limit of GBP 3 billion.

The 2023 Fiscal Framework review increased these limits in line with inflation, and the Scottish Government has been reviewing its capital borrowing policy options under these new limits. On 4 December 2024, the Scottish Government published a memorandum detailing the outcome of the initial due diligence and its updated capital borrowing policy in the context of the revised Fiscal Framework limits.

The key objectives for the issuance of bonds includes diversifying capital funding sources, enhancing fiscal sustainability, raising Scotland’s profile among financial investors, and developing institutional fiscal discipline. On 12th November 2025 Moody’s Investors Service and Standard & Poor’s assigned inaugural credit ratings for the Scottish Government of Aa3/AA respectively, both with a stable outlook.

The strength and diversity of Scotland’s economy, its strong institutional framework, as well as the Scottish Government’s prudent financial management and low levels of debt are factors highlighted in the agencies’ reports. Following the inaugural rating assignments, the Scottish Government announced its intention to pursue a GBP 1.5 billion bond programme over the next parliament, with a debut benchmark bond issuance currently anticipated for late 2026 or early 2027, subject to the outcome of the Scottish Parliament election, in-year borrowing requirements and market conditions.

To facilitate this, the Scottish Government intends to appoint a legal adviser to advise the Purchaser on this proposed issuance. The Legal Adviser will provide SG with support on all relevant legal and regulatory requirements related to a debut public listed bond issue.

The maximum value will depend on the issuance structure selected. If The Purchaser proceeds with a standalone transaction, the estimate value is 200,000 GBP - 300,000 GBP excluding VAT (including the optional extension period).

If The Purchaser proceeds with a Medium-Term Note programme, the estimated value is 1,300,000 GBP - 1,800,000 GBP excluding VAT (including the optional extension period). The maximum contract value will be confirmed prior to award.

Additional information: Start date and duration will be confirmed before award and align with the chosen issuance structure; expected June/July 2026. If standalone: June/July 2026 start, 2‑year term to June 2028 or completion, plus 12‑month extension. If MTN: June/July 2026 start, 3‑year term with two 12‑month extensions.