IIB Homeloans, a subsidiary of IIB Bank, yesterday announced that it had raised €650 million (£512 million) by way of securitisation in the European market.

IIB said the mortgage securitisation programme, the largest undertaken by an Irish company, had been substantially over-subscribed by European investors.

It described the over-subscription as a major vote of confidence in the Irish economy and the Irish property market.

Mr Brian MacManus, chief executive of IIB Homeloans, said the extra finance would be used to finance further mortgage lending and expand its share of the Irish mortgage market.