By bizn_fun 
When a government wants to borrow money from investors, it sells them something called a bond, which is a loan the government promises to pay back at the end of an agreed time – say five, ten, or 30 years.
The government will also make regular payments – which can be once every three months, six months, or year – to the investor.
In the UK, a government bond is called a gilt. As a play on this term, the Scottish bonds have been nicknamed “kilts”.
The Scottish government has had the power to issue bonds since 2016 but has previously borrowed money from the UK National Loans Fund, which is the UK government’s main account for managing its borrowing and lending.
Until recently there were stricter limits on how much it could raise through bonds.
Some analysis by the Scottish government suggests that bonds could offer better value for money under certain circumstances as well as greater flexibility.
In 2023, then First Minister Humza Yousaf commissioned initial work with the goal of issuing bonds before the end of the current Scottish Parliament session.
That came after advisers in the Scottish government’s Investor Panel recommended making bonds available to the market as a means of raising Scotland’s profile and attracting investment.