Finance Minister Michael Noonan has said there are further bonds and preference shares worth €7bn in Irish banks, which the Government will sell following the sale of €1bn in Bank of Ireland bonds this afternoon.

The notes are debt securities that convert to equity during "stress events" or if the bank's capital falls below a certain ratio.

Minister Noonan said the move represents a vote of confidence by international investors in Ireland's recovery and the Government's banking policies.

Mr Noonan said that since making this €1 billion investment in Bank of Ireland in July 2011 "the Irish taxpayer has received a generous return of 10% per annum on its money".

Bank of Ireland has previously said that there has been considerable interest in its bonds.

Davy, Deutsche Bank and UBS managed the sale.

The Government made the €1 billion investment during the 2011 PCAR exercise.