New Eurobonds from British Telecommunications will advance the cause of bondholder value by incorporating the same covenant package included in its recent $10bn (€10.6bn) global bond.

BT, which has to reduce its debt by £10bn this year, is roadshowing a bond issue in Europe. The deal will comprise a two-year euro floater, three- and 10-year fixed rate euro tranches and sterling tranches due in five and 15 years.