F1 flotation close to fruition

The IOU bonds were sold last seek at US$ 1.4 billion (£875 million) and will guarantee investors shares in F1 when it is floated.

F1 supremo Ecclestone said, 'Now that we have completed this transaction, we can look forward to the future stock market flotation of this exciting business. We can now build on the relationships we have established with the investment community.'

It is believed the price of the bonds will encourage floatation between 2001 and 2002.

A spokesman for Formula 1 Finance, which offered the bond, said the buyers were largely European banks, though it was not revealed which institutions bought the bond.

Investors in the Eurobond are also buying into the potential future profits of F1's lucrative TV rights, believed to generate about £150 million a year, and other commercial ventures controlled by Ecclestone's companies.

It is understood the money raised by the bond sale will go to Ecclestone's family trust.