Specialist mortgage lender Dilosk has raised €325m through the sale of bonds backed by residential mortgages.

This was the lender's fifth public bond issuance and it was backed by its own ICS Mortgages owner-occupier and buy-to-let residential mortgages.

Dilosk said that investor demand for the bond issuance was particularly strong, and the deal was oversubscribed with over €570m of investor demand for €325m of bonds.

It said the transaction consisted of seven classes of rated bonds which were placed with 20 institutional investors. 

Fergal McGrath, Dilosk co-founder and chief executive said today's deal cements the lender's position as a frequent issuer in the bond markets and supports the strong customer demand it has been experiencing for its ICS mortgages.

"It represents another positive milestone for Dilosk and our ICS Mortgages brand and will enable our ambitions to increase our share of the Irish mortgage market," Mr McGrath said.

"The level of interest amongst international investors was significant, representing an initial level of over-subscription of over 1.7 times. Since 2015, we have now raised over €1.3 billion through five transactions in the international capital markets," he added.