BANGKOK: Thailand plans to issue up to $1 billion in overseas bonds, which would be the first time in more than two decades, a finance ministry official said 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 ministry’s public debt management office.

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.

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The ministry also plans additional borrowing of more than 200 billion baht ($5.5 billion) for the 2024 fiscal year ending September, Patchara said, on top of 754 billion baht previously approved.

The government will sell savings bonds worth 100 billion baht in the fiscal year, with the first 40 billion baht of five-to 10-years bonds to be offered next month, Patchara said.