Broadcasting House is one of the buildings due for a makeover

The bond issue marks the first time that the broadcaster, funded mainly by a compulsory licence fee levied on all television owners, has raised money from the capital markets.

A spokesman said the organisation had decided on a bond issue after ruling out alternative financing options as too costly.

"It offers really good value for the licence payer," he said.

"Interest rates are low, so it's a good opportunity to tap the bond markets."

The BBC's options for raising cash are constrained by its commitment to spending licence payers' money on programmes rather than maintenance, and the �200m annual limit on the amount it can borrow from the government.

Sale and leaseback

Investors who buy the BBC bonds will be repaid out of the money the broadcaster raises by leasing office and studio space in the new buildings to outside parties.

Alex Northcote of investment bank Morgan Stanley, which is handling the bond issue, said the transaction was "fairly standard."

"It's what we in the industry call 'plain vanilla," he said.

The BBC bonds have been awarded a double A rating by credit agencies, reflecting the organisation's steady annual cash flow.

The bonds are seen as a reliable investment because they are backed by an insurance policy guaranteeing payments to bondholders.

The money raised from the bond issue will be used to modernise BBC premises which have not kept pace with recent innovations in broadcast technology.

BBC buildings earmarked for refurbishment include Broadcasting House in central London.