The Japanese government will on Wednesday unveil plans to securitise about Y400bn ($3.74bn) a year in loans to special public institutions over the next few years as part of a scheme to shrink government assets by Y140,000bn.

In the first securitisation of national assets, the Japanese government will next month launch an initial Y100bn in 10-year bonds backed by loans to national hospitals, universities, financial institutions and other entities that do not receive private sector equity financing.