The National Treasury Management Agency (NTMA) has sold €2.5 billion worth of Irish government debt today.

The sale was oversubscribed to the tune of €7 billion.

It is understood the interest rate charged was about 3.35%.

The NTMA had mandated Barclays, Danske, Davy, RBS and Société Générale as joint lead managers for the transaction.

Bonds were sold to investment funds across Europe, the United Kingdom and the United States.

High interest from UK, Germany

It has been looking to raise about €2 billion but there was significant demand so the sale was increased to €2.5 billion.

There has been interest in the bonds from pension and investment funds in Britain and most of Europe - particularly Germany and Scandinavian countries.

The money will be used by the NTMA to re-pay money we owe next year.

Further sale of bonds is expected in the coming months with Ireland set to re-pay €10 billion of debt in 2014 so this will be the first in series of auctions or sales.

The Central Bank governor Patrick Honohan has said that despite all the budget cuts Irish borrowing rates are far too high.

Newstalk's Business Editor Ian Guider explains why it was seen as such a success.