Bangkok Post – Issue of dollar bonds ruled out this year

Finance ministry backtracks on what would have been the first overseas debt issue in two decades

The government has no plans currently to issue dollar bonds overseas this year as it is still studying the issue while waiting for a clearer market direction, a Ministry of Finance official said on Thursday.

In February, the ministry had said it was looking at issuing up to $1 billion in overseas bonds, which would have been the first such issue in more than two decades, to help create a reference yield for companies seeking funds in foreign markets.

Such a bond issue would need to wait until next year at the earliest, Jindarat Viriyataveekul, an advisor to the ministry’s Public Debt Management Office, told reporters.

Ms Jindarat also said the ratio of public debt to gross domestic product was expected to rise to 65.03% at the end of the 2024 fiscal year on Sept 30, from 63.37% at the end of March.

That compares with the official debt ceiling of 70%.

She said the higher debt ratio is in line with government spending under the 2024 fiscal budget that was finally approved last month.

The 3.48-trillion-baht budget was delayed from the original start date of Oct 1, 2023 due to prolonged political gridlock following the election in May.