FIFA said on Monday it plans to sell a $250 million bond aimed at protecting its investment in the 2006 World Cup finals.

Market sources said the deal, if successful, would make bondholders rather than world soccer's governing body responsible for costs should the tournament in Germany be cancelled.

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

Andreas Herren, a spokesman for Zurich-based FIFA, confirmed the bond sale, but declined to give further details, citing regulatory restrictions in the U.S. where the bond will be marketed.

"Roadshows will run during the first two weeks of September," a London-based source close to the deal said. "FIFA feels it will have better pricing buying insurance from bond investors than in the traditional insurance market."

The bond will be denominated in dollars, Swiss francs and euros, and sold to bond portfolio managers and insurers worldwide. It is expected to mature in 2006, according to the source.

FIFA, which will celebrate its centenary next year, is expected to come up with pricing details later in September after investor feedback.

The organisation operates on a four-year budget cycle from one World Cup to the next. It said in April 2003 its 1998-2002 budget accounts beat projections with a 115 million Swiss francs ($82 million) surplus.

It is projecting a surplus of 169.9 million Swiss francs (US$121 million) for the 2003-2006 budgeting period, including income from TV rights, marketing, event hosting, brand licensing and match levies.

FIFA said Credit Suisse First Boston (CSFB) will manage the bond deal.

CSFB also privately placed FIFA's first ever bond in 2001. The $420 million issue was secured on its marketing rights for the 2002 World Cup in South Korea and Japan.