The NTMA has borrowed €4 billion in the bond markets at an record low interest rate of 0.867 per cent. The successful sale of the seven-year bond means Ireland has raised almost a third of the cash it plans to borrow this year.

Bids in excess of €5.75 billion had been received for the available bonds by 11.00am. In common with much of the rest of the euro zone, yields on Irish bonds have fallen sharply in the past year, aided by an economic recovery which is likely to have seen Ireland's economy grow faster than any other European Union country in 2014.

The cost of borrowing 10-year debt issued by Dublin on secondary markets was near record lows at 1.18 per cent on Wednesday, having barely reacted to the calling of snap elections in Greece, which hit bonds from some other peripheral euro zone countries.

Greek 10-year bond yields rose above 10 per cent for the first time since September 2013 as Irish debt moves closer to perceived safer bets such as Belgium, which was selling 10-year debt at 11 basis points over mid-swaps on Wednesday.

Fully pre-funded for the rest of 2015, Dublin plans to issue €12 billion to €15 billion of long-term bonds this year. It said last month it would include at least one syndicated issue.

As well as beginning to cover its funding requirements for 2016, Ireland needs to raise debt this year to finish refinancing the majority of its bailout loans from the International Monetary Fund.

Dublin plans to use cheaper market funding to replace more than €18 billion euros of the money it borrowed in 2010 as part of a three-year bailout. It repaid €9 billion euros last month to start reducing the cost of carrying national debt set to remain above 100 per cent of annual economic output until 2018.

Ireland raised €3.75 billion euros towards making the first repayment by selling new 15-year debt at a record-low yield of 2.49 per cent in November.

Barclays, Davy, HSBC, JP Morgan, Nomura and Royal Bank of Scotland were mandated as joint lead managers for the issue.

– Reuters