The National Treasury Management Agency is expected to attempt to raise €10bn in the next 18 months by borrowing from the financial markets.

Some €3bn to €5bn would be raised through new types of bonds which the NTMA is issuing for the first time to attract new investors, particularly domestic pension funds.

The agency today published its Annual Report for 2011

It is going to sell bonds which target pension funds and repay interest and capital over the lifetime of loan instead of repaying the capital at the end of loan.

It is also to sell inflation linked bonds in an effort to woo investors.

NTMA CEO John Corrigan said 80% of investors who bought the €500m short term treasury bill issued by the organisation on July 5 were based abroad.

It is planning three to four more auctions of treasury bills this year.

Mr Corrigan said that troika and budgetary commitments and the euro zone debt crisis were key influencing factors in coming months

It further proposes diversifying its sources of funding by issuing Ireland's fist sovereign amortising bonds and inflation-linked bonds and issuing its first conventional bond since September 2010.

He said "For some time now the NTMA's plan has been to carefully and deliberately re-engage with the debt markets in a phased manner."

He added the process of returning to the markets is "now underway and will continue over the coming months as we increase the size and maturity of Treasury Bill issuance and introduce two new types of funding instrument specifically tailored to the needs of the domestic pensions industry."

Market conditions permitting, the NTMA also plans to issue a conventional medium to long-term bond.