Bond is first to be issued by a Scottish council

Aberdeen has become the first local council in Scotland to issue a bond to fund infrastructure improvements.

The £370m bond is equivalent to over a third of the city’s annual budget and nearly three times its annual expenditure on capital projects.

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.”

Bond issues have become increasingly popular in England, with local authorities such as Warrington using them to raise cash for projects.

Capital investment in Aberdeen is continuing despite the downturn in the global oil and gas markets, which has affected the coastal city which has strong ties to the sector.

Developer Henry Boot committed to a £333m exhibition centre in the city over the summer, which local builder Robertson Construction has started constructing.