Aberdeen council launches multi-million pound bond to transform the city
Aberdeen became the first local council in Scotland to successfully price an investment bond, today, as part of key a strategic push to transform the city.
Proceeds from the £371m index-linked bond are equivalent to over a third of the city's annual budget and nearly three times its annual expenditure on capital projects.
Bond issuances from local authorities outside of Scotland have become increasingly popular in recent months. Warrington was one of the first cities to do so when it issued a £150m bond in August 2015.
Read more: Now clever grads can earn a masters in offshore decommissioning
Council leader Jennifer Laing said: "This is a remarkable achievement by this council in securing this investment in the future of our city… the issue of the bond sees another step forward by the council."
Despite concerns over Aberdeen's economic exposure to the beleaguered oil and gas sector, representatives from the council stressed that the city was very much open for business. Furthermore the city's population grew by 11 per cent between 2004 and 2014.
"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," said Laing.
Read more: An extra pound a pint? Aberdeen's not impressed by new Megabrew offer
Councillor Willie Young added that the financing would give the council a greater degree of 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," he said.