London Stock Exchange welcomes Aberdeen City Council
London Stock Exchange today welcomes Aberdeen City Council following the successful pricing of index linked bonds for an aggregate principal amount of £370 million in November 2016.
The funds will help secure investment in the city to deliver its transformational capital and infrastructure programme. The bond is the first of its kind by a Scottish local authority and demonstrates the strength of commitment to both Aberdeen and the Council by investors.
Aberdeen City Council Leader Councillor Jennifer Laing said:
"The success of the bond issue is a remarkable achievement by this Council in securing this investment in the future of our city. Having already secured a credit rating from Moody's Investors Service at Aa2, the issue of the bond was a vital step forward by the Council in delivering a stable and fiscally prudent financial strategy that is both affordable and sustainable for the future as demonstrated by investor confidence."
To continue to compete on an international stage, it is vital that we deliver world class facilities for Aberdeen's citizens, businesses and visitors. The bond issue was a major boost towards that objective."
Aberdeen City Council Finance, Policy and Resources committee convener Councillor Willie Young said:
"The bond issue was 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."
The proceeds from the bond issue will be used to drive a capital programme which includes investment in vital infrastructure throughout the city. This includes the comprehensive City Centre Masterplan, school and housing developments, roads construction, digital enhancements and a variety of key projects designed to act as a catalyst for economic growth.