Asset Management

BT funds £2bn pension pledge with bond issuance

Unusual move will involve proceeds paid directly to pension scheme, in the latest in a long line of attempts to shore up its finances

BT funds £2bn pension pledge with bond issuance
Photo: Getty Images

Telecoms giant BT is to hand £2bn of bonds to its own pension fund, in an unusual move to shore up the finances of the UK's third-largest retirement scheme.

The plan is aimed at tackling a £5bn-plus surge in the pension fund's deficit, from £7bn four years ago to £11.3bn as of June 30, 2017.

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