(AFP) The Finance ministry said today it would launch a global bond offer in international capital markets for "general funding purposes".

The ministry, in a brief statement, gave no details of the size of the offer.

"The proceeds from the offering represent new financing and will be used for the general funding purposes of the government," the ministry said.

It said the bonds would be rated 'BBB' by Standard and Poor's and 'Baa2' by Moody's. JP Morgan and Salomon Smith Barney have been appointed as the joint lead managers.

A ministry spokesman said he had no immediate information on the size of the offering.

In March Prime Minister Mahathir Mohamed unveiled a RM3 billion supplementary budget to shore up the economy amid a US slowdown.

The premier said the government has to take "preemptive measures" to sustain the growth momentum.

Mahathir said the government's 2001 budget deficit of 4.9 percent of gross national product might rise slightly following the additional spending. He gave no details.

Among new projects identified were 200 schools, 193 colleges, four universities, 6,600 houses for soldiers and RM600 million in oil palm replanting subsidies and special assistance to rubber smallholders.