Tourists in Bangkok, Thailand (Photo: AFP/VNA) Bangkok (VNA) – Thailand plans to issue bonds overseas to create a benchmark for the private sector and to draw foreign investors' attention, Thai Deputy Minister of Finance Julapun Amornvivat said on October24.
However, the ministry has yet to decide when the bonds will be sold, by how much and in what currency, he said, adding that the Thai government has to look at an appropriate cost and timeline.
"There is no problems with domestic liquidity," he said.
He added that issuing bonds overseas is to test and explore the market and draw more people's attention to Thailand.
The government has recently announced sustainability bonds worth 2 billion USD that have attracted investor interest, he added.
Given higher yields, Julapun said the government's borrowing costs rose to about 3% but are still not too high. A rise in the 10-year bond yield has been driven by global factors, rather than a lack of confidence in the government's policies, he said.
The Bank of Thailand's (BoT) rate hikes lately were not mainly because of inflation but to narrow the gap between US and Thai rates, which has caused capital outflows from the stock and bond markets, Julapun said./.
