Diageo, U.K. spirits company is pledging up to 2.5 million barrels of its maturing whiskey to its U.K. pension fund.

The transfer is part of a 10-year funding plan addressing a pension-fund deficit totaling £862 million ($1.29 billion)

Ian Warman, pensions partner at advisory firm KPMG said almost any form of asset could be used either as a contingent security or to generate an income stream for a pension fund..

The liquid held by Diageo's pension scheme will be a maximum of three years old and will therefore not be old enough to be bottled as whisky. Once the liquid reaches three years old and becomes usable, Diageo will take back the stock and replace it with fresh liquid, thereby ensuring that the value of the stock held remains constant at £430 million.

After 15 years, the pension trustee will sell its share of the partnership back to Diageo for an amount equal to the remaining deficit and no more than £430 million.

The deal provides the pension fund with an immediate and significant reduction in its deficit, a spokesman for Diageo said, while having no impact on the drinks giant's free cashflow. It also ensures Diageo retains complete control over its ability to use the liquid, he said.