The National Asset Management Agency (NAMA) confirmed it has paid back another €1bn of senior notes this week, in its second redemption of the year.

It means the body has now redeemed 85% of the €30.2bn of senior debt issued in 2010 and 2011 to acquire commercial property loans.

Having repaid €25.6bn to date, its senior debt now stands at €4.6bn, less than one-sixth of its peak level.

Senior bond made up 95% of the heavily discounted payment it made to banks, with the remaining 5% comprising subordinated bonds.

In its announcement, NAMA said it is on course to have redeemed all senior debt by 2018.