Bank of Ireland is to establish a specialist hedge funds administration in Belfast, creating 149 jobs.

The announcement was made yesterday by group chief executive Brian Goggin. He was accompanied by First Minister Ian Paisley, Deputy First Minister Martin McGuinness and Leslie Morrison, the head of Invest Northern Ireland which is supporting the plan with more than £2 million (€2.98 million).

The offshore alternative investment funds market, specifically, the hedge fund segment, is growing at 20 per cent per annum.

The bank also announced its intention to expand its existing branch and business centre network in Northern Ireland, investing some £13 million in expanding its network of branches and business centres over the next two years and increasing the total of staff in the network by 100.

"We are very excited about the prospect of creating a sizeable presence in Belfast servicing the offshore hedge fund industry," Mr Goggin said. He said the decision to locate in Belfast reflected the availability of local highly-skilled staff, new political stability and links with the universities.

"The restoration of devolution has not only brought a greater sense of hope and optimism for the future, but it has also projected the Northern Ireland economy onto centre stage and created the circumstances for strong business growth."

Mr Morrison said the specialist business centre will "reinforce Northern Ireland's reputation as a premier location for investment while playing an integral role in the growth of Bank of Ireland Securities Services".

Dr Paisley praised the close co-operation between Invest Northern Ireland and Bank of Ireland to secure the investment, which is the first of its kind in Belfast. "Northern Ireland's financial services sector is growing rapidly," he said. "It is now one of the most attractive locations for global firms seeking the best skills and infrastructure to service European customers."