Real estate investment trust Hibernia REIT has raised €125m in debt from five new US investors.

It said it will use the funds to develop its new office developments at Clanwilliam Court and Harcourt Square in Dublin.

Hibernia REIT, which specialises mostly in commercial and industrial developments, took on the 10 to 12 year debt at a rate of 1.9%.

It more than doubles the amount it has available in cash and undrawn debt.

Hibernia said its weighted average debt maturity at the end of March was 3.4 years and its cash and undrawn facilities, net of commitments, amounted to €110m.

This new funding sees its weighted average debt maturity extended to 5.2 years, while its cash and undrawn facilities, net of commitments, increases to €235m.

Tom Edwards-Moss, chief financial officer of Hibernia, said the the new debt issue increases its financial capacity and will help fund the development of our its office clusters at Clanwilliam Court and Harcourt Square.

"We are also delighted to welcome five new investors as long-term lenders. The new notes have a fixed coupon below the average cost of our existing borrowings and significantly extend the weighted average maturity of our debt," he added.