The European Investment Bank is to provide €100m to the Government for capital investment in schools.
The investment will fund more than 550 classrooms, in 35 primary and 12 secondary schools, according to the Department of Education.
The 25-year-loan from the EIB will form part of the Government's €219m school expansion programme.
Ruairí Quinn said that the funding will support the implementation of the five year programme, in an efficient and cost effective manner.
The baby boom over the last decade means that 70,000 additional school places will be needed over the next seven years.
A delegation from the EIB is in Dublin for a two day visit and will meet An Taoiseach and Ministers of Finance, Public Expenditure and Reform and Education.
