FIFA to insure World Cup by bond

FIFA, the international governing body of world football, confirmed that it plans to sell a $250m (€228m) bond to insure the 2006 World Cup championship in Germany.

If the sale goes through, bondholders rather than FIFA would be responsible for costs if the 2006 soccer World Cup in Germany is cancelled.

FIFA have said that they chose this arrangement over the traditional insurance market, which they say no longer caters for their needs.

In return, FIFA will pay bondholders for taking on the risk.

Although FIFA have confirmed the sale the organisation did not give further details, because of US regulatory restrictions, where the bond will be marketed.