The National Treasury Management Agency said it had raised €609.5m through the first-ever placement of an inflation-linked bond.
The bond's interest payments and principal repayment will be linked to the Eurostat Harmonised Index of Consumer Prices (HICP) for Ireland, excluding tobacco.
HICP measures the average change over time in the prices paid by households for a specific, regularly updated basket of consumer goods and services.
The annual average change in the Ireland's HICP, excluding tobacco, over the last 20 years, was about 1.7%.
The inflation-linked bond will mature in April 2040 and its annual coupon is 0.25%.
The agency said the issue of such a bond is in line with its stated intention to diversify its issuance over the long term and increase the pool of investors in Irish bonds.
"Diversifying the pool of capital available to Ireland by investor type, geography and product is a core part of the NTMA's funding strategy," the agency's director of Funding and Debt Management Frank O'Connor said.
Inflation-linked bonds have become an increasing component of the European bond market in recent years.
The NTMA said that France, Italy and Germany issue between 6% and 10% of their debt in the form of inflation-linked bonds.
Meanwhile, Frank O'Connor said that the NTMA does not plan to issue a debut dollar-denominated bond in the near term, but expects to eventually tap that market.
"I see that type of issuance as part of our tool kit, but probably not in the near term," Mr O'Connor said.
He said the agency, which has issued about €8 billion of a planned €9-13 billion issuance of long-term debt this year, does not have plans to issue a new 10-year bond in the coming months.
Davy Capital Markets managed today's bond issuance, with the firm's Global Strategist Donal O’Mahony saying Davy has "long been aware of the latent demand for this category of Irish fixed income option amongst our institutional client base".
He added: "With reflation sentiment still apparent across the financial marketplace, the appetite for inflation-linked paper is likely to endure in global fixed income.
"It is against this backdrop that the NTMA’s debut offering may prove precursor to stepped-up "linker" issuance in the years ahead."