COMMUNICATIONS group BT has unveiled radical plans to boost its debt-reduction programme by completing one of the largest ever corporate bond sales.

The group, which called the offering a ''sensational deal'', issued bonds worth a total of 9.7 billion euros, equivalent to £6.6bn.

Shares failed to spark on the news however, rising 2p to 704p. BT's shares have risen more than 100p since the start of this year, but the stock is still a long way short of the £15.13 high that it reached at the start of 2000.

Traders said the relief in the market over the success of the bond issue was offset by investors trimming their holdings after the recent share rally this year.

Andy Longdon, BT group treasurer, said the deal had been an ''astonishingly successful offering demonstrating a huge appetite by investors for BT bonds''.

The group, which expects its debt to rise to £30bn by this spring - an increase from £18.7bn in September 2000 - said the proceeds from yesterday's offering would be used to reduce short term borrowings.

Mr Longdon said: "It removes any concern that BT is exposed to short term debt'.'

BT added that over the past two months of business it had raised around 20 billion euros equivalent from the debt capital markets.

The issue was lead-managed by Barclays Capital, Deutsche Bank and HSBC, following an extensiive roadshow in Europe which covered eight European countries.

BT's borrowings have been incurred by bidding for third generation mobile phone licences and acquisitions