(Reuters) - The Japanese government intends to create a sovereign wealth fund to invest in American infrastructure projects to improve economic relations with Washington while putting excess capital to better use, the Nikkei reported.
Japan is expected to offer the fund as an example of economic cooperation with the United States at trade talks between the two countries from Aug. 9, the financial daily said.
The size of the fund has yet to be determined, and Tokyo plans to eventually raise money for the fund by offering long-term debt with a yield of zero, the Nikkei reported. Japan’s Cabinet Office will form a committee to discuss the proposal as early as this month.
The proposal for the fund also urges converting the money raised into foreign currency once the yen strengthens, the Nikkei said.
Reporting by Ambar Warrick in Bengaluru