Ireland sovereign debt management agency has raised €300 million through the placement of an inflation-linked bond.

This is the second time the National Treasury Management Agency (NTMA) has used the inflation-linked product. It raised €609.5 million with a bond issued in April 2017.

Interest on the bond, which matures in April 2045, will be linked to the Eurostat Harmonised Index of Consumer Prices for Ireland, excluding tobacco.

Frank O’Connor, NTMA director of funding and debt management, said: “This transaction is an attractive form of borrowing which allows us to harness demand from Irish institutional investors.”

He said the inflation-linked bond gave investors an investment that is tailored to their specific requirements while allowing the State to borrow for a long duration on competitive terms. The bond was issued at a negative real yield of minus 0.05 per cent.