German luxury car maker BMW is believed to be exploring an option to free its balance sheet of $2.6 billion worth of pension liabilities.

The Munich-headquartered auto maker is looking into externally funding the multi-billion dollar pension liabilities via a contractual trust arrangement (CTA), Investments & Pensions Europe has learned.

According to I&PE quoting an anonymous source , BMW has being examining the possibility of restructuring its pension liabilities for some time including inviting and fielding pitches from financial service providers on the matter.

The source said BMW had not yet decided on a specific course of action and therefore has not yet set the CTA process in motion. However, it is believed that BMW will move on the issue very soon.