The government plans to issue up to $1 billion in overseas bonds, the first time in more than two decades, a Ministry of Finance official confirmed on Tuesday.
The foreign currency bonds with a maturity of more than 10 years will help create a reference yield for companies seeking funds in foreign markets, said Patchara Anuntasilpa, head of the Public Debt Management Office (PDMO).
The ministry is studying the bond plan and expects the result in March, he added.
However, raising funds overseas will have higher costs than in the domestic market, where interest rates are lower, he said.
The ministry also plans additional borrowing of more than 200 billion baht for the 2024 fiscal year ending on Sept 30, Mr Patchara said, on top of 754 billion previously approved.
The government will sell savings bonds worth 100 billion baht within the fiscal year, with the first 40 billion baht of five- to 10-year bonds to be offered next month, Mr Patchara said.
Authorities have preferred raising the billions of dollars required annually to bridge a budget gap and fund investments locally because of low interest rates. In 2022, the PDMO shelved a planned dollar bond offering partly due to market volatility.
But Prime Minister Srettha Thavisin has pitched for overseas bond sales to allow global funds to finance sustainable projects.
Deputy Finance Minister Julapun Amornvivat said last month that authorities were evaluating the sale of notes denominated in dollars, yen or yuan with a target to issue them over the next one to two years.
The proceeds from any international bond sale will likely go to finance sustainability-linked projects as they add value to the economy, Mr Patchara said earlier.
Currently, foreign-currency debt accounts for only 1.8% of total Thai government debt, mostly in the form of loans from multilateral agencies.