The National Treasury Management Agency has confirmed it is to offer investors a new type of bond which will be targeted at pension funds.

The bonds would see investors repaid capital and interest over a period of years as opposed to the capital being repaid at the end of the repayment period as happens with existing bonds.

The new products, called amortising bonds, are designed for the pension industry which has been interested in investing in the products.

The bonds will have maturities of 15, 20, 25, 30 and 35 years, the NTMA said in a statement today.

The agency is expected to try to raise up to €1 billion in the next week by selling the bonds.

At the launch of its annual report in recent weeks the NTMA said it hoped to raise €3bn to €5bn with the new bonds over the next 18 months.