The National Treasury Management Agency is to raise new medium-term borrowing throug issuing additional bonds due in 2017.

In a statement the NTMA announced it was to raise the new funds through what is called a "syndicated tap" meaning it will issue additional amounts of an existing bond, due for repayment in 2017, rather than issuing new bonds.

Market sources said the NTMA would most likely seek to raise between €1 billion and €2 billion.

"The NTMA has mandated Barclays, Danske, Davy, RBS and Société Générale as joint lead managers for the transaction, details of which will be announced in due course," the statement from the agency said.

Owen Callan, senior fixed income strategist at Danske Bank Capital Markets said the move marks a" massive step" towards regaining full market access for Ireland.

"We expect another one or two syndicated bond issuances during the course of the year," he said.