The National Treasury Management Agency has today mandated a number of banks to sell more of its 11-year green bond.

This would mark the debt agency's second foray into an increasingly popular market that raises capital for projects with environmental benefits. 

The NTMA raised €3 billion from the initial sale of its first ever green bond a year ago amid demand to issue almost four times that amount.

A market source said it could raise another €1-1.5 billion this time. 

Although green bonds make up a fraction of the overall market, global interest has soared as banks, sovereigns and companies look to tap into increasing investor appetite as calls grow for tougher and swifter steps against climate change. 

Led by issuance in France and the Netherlands, a total of €8 billion in sovereign green bonds were issued in the second quarter.

This marks the greatest quarterly change to date, the Association for Financial Markets in Europe said last month. 

The NTMA said the sale would be launched and priced in the near future, subject to market conditions, language it regularly uses when kicking off a syndicated sale the next day. 

In a statement, the NTMA said it had mandated BNP Paribas, Barclays, Bank of America Merrill Lynch, Danske Bank, Davy Stockbrokers and JP Morgan as joint lead managers for the syndicated tap.

Ireland has raised €12.25 billion from its targeted €14 billion to €18 billion range from bond sales this year, with one more regular bond auction scheduled for next month.