Ryanair has raised €850m through the sale of a seven-year euro bond, which was auctioned at a rate of 1.875%.

It is the first time the airline has raised capital through a bond sale, the proceeds of which will go towards the purchase of 180 new Boeing aircraft.

Earlier this year, Ryanair secured a BBB+ credit rating from both the Standard & Poors and Fitch agencies, which paved the way for the issuing of a bond.

The airline's chief financial officer and deputy chief executive, Howard Millar, said the bond sale was eight times over-subscribed with interest coming from investors across Europe.