International bond markets: FOI release

Information requested

On the 17th of October the First Minister announced that the Scottish Government were in the process of considering the issuance to the international bond markets.

1. I would like to see any analysis or discussion by the Scottish Government with respect to likely interest rates which the bonds would carry and in particular any premium which may be expected
over and above similar bonds issued by the UK Government.

2. I would also like any analysis or discussion of the cost benefit analysis of effecting borrowing this way as opposed to the existing method of through the national consolidated fund.

3. Finally I would like any discussion or analysis of any expectation by the Scottish Government that such bond issuance would be underwritten by the UK Government?

Response

1. I enclose a copy of some of the information you requested. This information can be found in Annex B which is attached separately.

2. While our aim is to provide information whenever possible, in this instance we are unable to provide some of the information you have requested because (1) the Scottish Government does not hold some of the information requested and (2) an exemption under Section 29(1)(a) – formulation or development of government policy of FOISA applies to some of the information. The reasons why that exemption applies is explained in Annex A below.

ANNEX A

REASONS FOR NOT PROVIDING INFORMATION

Information not held

The Scottish Government does not hold analysis or discussion with respect to your request for any discussions or analysis of any expectation by the Scottish Government that such bond issuance would be underwritten by the UK Government.

This is a formal notice under section 17(1) of FOISA that the Scottish Government does not have this information. As the First Minister set out, our intention to issue a bond will be subject to robust due diligence and market testing which will be completed in due course.

An exemption applies

An exemption under section 29(1)(a) of FOISA (formulation or development of government policy) applies to some of the information requested because it relates to the formulation of the Scottish
Government’s policy on the issuance of Scottish bonds.

This exemption is subject to the ‘public interest test’. Therefore, taking account of all the circumstances of this case, we have considered if the public interest in disclosing the information outweighs the public interest in applying the exemption. We have found that, on balance, the public interest lies in favour of upholding the exemption. We recognise that there is a public interest in disclosing information as part of open, transparent and accountable government, and to inform public debate. However, there is a greater public interest in high quality policy and decision-making, and in the properly considered implementation and development of policies and decisions. This means that Ministers and officials need to be able to consider all available options and to debate those rigorously, to fully understand their possible implications. Their candour in doing so will be affected by their assessment of whether the discussions on the issuance of Scottish bonds will be disclosed in the near future, when it may undermine or constrain the Government’s view on that policy while it is still under discussion and development.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses.

FOI - 202300381383 - Information released - Annex B

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12 page PDF

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