AIB has completed a senior debt transaction, representing the first such issue from the bank since the country's financial sector collapsed in 2008.
The €500m fixed rate senior unsecured debt issue attracted strong demand from European bond investors, with more than 260 accounts putting in €3.6 billion of orders for the trade.
The transaction was managed by Deutsche Bank, Goldman Sachs, JP Morgan, Morgan Stanley and Nomura and had a maturity of three years at a rate of 2.875%.
According to the bank, investors from 25 different countries showed an interest in the transaction including firms from Britain, Germany, France and Italy.
Almost all subsequent allocations were made to international bodies.
AIB had held investor calls yesterday ahead of the trade in order to give potential buyers an update on the credit.
"This is a big trade for them, a big trade for Ireland as a country and a sign of the progress that's been made by these banks in re-accessing the market," a lead manager said.
"There is clarity around the bank's asset-quality and they are nearing the bottom as far as non-performing loans are concerned. Investors have got confidence around their capital model," he added.
The bank made an after-tax loss of €758m in the first six months of 2013 including a €738m provision for impaired loans. Without the provisioning, the bank made an operating profit of €162m.
While AIB has sold public bond market transactions, this is the first time that investors have been able to buy the credit on an unsecured basis.
Bank of Ireland is the only other Irish bank to have raised senior debt in the public market since the financial crisis.
