The National Asset Management Agency said it has now repaid 85 per cent of the €30.2 billion of senior bonds it issued to banks during the financial crisis to pay for their risky commercial property loans.

This comes after Nama redeemed a further €1 billion of such notes earlier today, marking its second such bond buyback so far this year.

Senior bonds comprised 95 per cent of the deeply discounted payment it made to banks between 2010 and 2010 for their loans. The remaining 5 per cent is made up of subordinated bonds.

Nama said it remains on course to meet its ultimate target of redeeming all its senior debt by 2018.