The National Solidarity Bond has raised €255 million in the five months since its launch, with some 11,500 people investing in the 10-year scheme.
Cork TD and vice chairman of the Oireachtas finance committee Michael McGrath said the bond was "a real success story".
"The purpose of the bond is to allow citizens an opportunity to invest and provide money to the State to stimulate economic recovery and to assist in the maintenance and creation of employment while at the same time earning a high rate of return on their investment," he said. "The bond has been a real success story with over a quarter of a billion euro invested in just five months."
The proceeds of the bond, which is managed by the National Treasury Management Agency, are used to fund the Exchequer. It forms part of the national debt.
"In other words, the bond represents an opportunity for Irish people to take the place of bondholders and lend to the Irish Government," he said.
The scheme was announced last December by the Minister for Finance as part of his 2010 budget.
It is aimed at small investors, with a minimum investment of €500 and an upper limit of €250,000. Interest is paid annually over 10 years, with a “final redemption bonus” for investors when the bond matures.