The Neighbouring Countries Economic Development Cooperation Agency (Neda) has revamped lending practices by approaching 20 projects in neighbouring countries about financial facilities instead of waiting for their requests.
These projects are expected to help bridge economic connections between Thailand and neighbours Myanmar, Laos and Cambodia, said president Perames Vudthitornetiraks.
The projects will also be used to set Neda's strategy over the next 5-10 years, he said.
Neighbouring countries previously would propose project funding to Neda for consideration, mostly basic infrastructure to develop the economy and society.
Neda surveyed state officials and companies in 10 border provinces to find which projects in neighbouring countries would most benefit Thailand's border areas.
The survey was used to set Neda's blueprint in extending financial facilities, he said.
Neda will begin with providing financial assistance to Myanmar after offering low-rate loans to Cambodia and Laos, Mr Perames said.
The two projects in Myanmar include an upgrade of a 138-kilometre two-lane highway to link the Dawei special economic zone to Thailand.
The Thai government recently approved the Myanmar's government request for a 4.5-billion-baht loan with an interest rate of 0.1%. The loan has maturity of 30 years, with a grace period of 10 years.
The loan agreement is expected to be signed by September.
Regarding Neda's planned new bond issuance worth 1 billion baht to refinance short-term debt into a longer maturity, Mr Perames said the bond is expected to be offered in the third quarter.
The coupon rate of Neda's five-year bond should be similar to government bond rates because the bond has been assigned an AAA rating by Tris Rating.
Neda will use funds from the bond issuance to refinance its debt. It has drawn down 1.5 billion baht out of 3.6 billion baht in standby credit from financial institutions.
