DFSED-SG Bond Bookrunners

Location

Glasgow

Description

The Scottish Government is seeking to appoint external service providers 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. A GBP 1.5 billion programme is expected to commence 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.

Total Quantity or Scope

The Scottish Government intends to establish a multi-supplier framework agreement, expected to run for four years and cover multiple debt issuance. The framework will include several banks, each with the opportunity to act as Lead Manager for the inaugural and any future bond issuance. Please note: -This requirement is exempt from the Public Contracts (Scotland) Regulations 2015 under regulation 11(1)(f). -It is also excluded under Section 4 of the Procurement Reform (Scotland) Act 2014. Despite these exemptions, the Scottish Government will adhere to the principles set out in the Scottish Procurement Policy Handbook, ensuring: -Value for Money (VfM) -Transparency, fairness, and accountability -Compliance with internal procurement policies and financial regulations.

Renewal Options

The Framework Agreement is anticipated to commence in July 2026 for an initial period of 36 months, with the option to extend for one further 12-month period.

Award Criteria

CPV Codes

• 66110000 - Banking services
• 66120000 - Investment banking services and related services
• 66100000 - Banking and investment services

Indicators

• Bids should cover the whole contract.
• Renewals are available.
• Financial restrictions apply.
• Professional qualifications are sought.
• Staff qualifications are relevant.
• Award on basis of price.

Other Information

The buyer is using PCS-Tender to conduct this ITT exercise. The Project code is 31063. For more information see: http://www.publiccontractsscotland.gov.uk/info/InfoCentre.aspx?ID=2343 A sub-contract clause has been included in this contract. For more information see: http://www.publiccontractsscotland.gov.uk/info/InfoCentre.aspx?ID=2363 The Contracting Authority does not intend to include any community benefit requirements in this contract for the following reason: Community benefits have been considered and are not directly related to the type of services required. Therefore, the standard information on the Scottish Government approach to community benefits will not be inserted into the ITT and bidders will be asked to outline their approach to community benefits as a non-scored response. However, Bond Proceeds will Be used as part of the wider Capital Borrowing strategy to fund key projects in the Infrastructure Delivery Pipeline and to support economic growth including but not limited to: - 36,000 affordable homes - NHS estate upgrades - Road, rail and ferry renewal - Green energy investments - Nature restoration and creation While the framework itself will not directly deliver community benefits, the wider bonds programme (and the investments it enables) will underpin many of Scotland’s national outcomes and create meaningful opportunities for community benefit delivery. (SC Ref:821880)