AIB has sold €500m of a three and a half year secured bond at an interest rate of around 2.3%.

The sale was oversubscribed by over four times - €2.2 billion of orders were placed for a €500m issuance.

The bank said that demand came from over 20 countries with over 99% of the orders placed outside Ireland.

It is the second time that AIB Mortgage Bank has suucessfully tapped the market in recent months - last November it sold €500m in three year bonds.