The National Asset Management Agency has said today it will repay €500 million of bonds this week.

This follows the first payment of bonds in March, when €250 million was repaid.

In addition to these payments, Nama previously repaid €299 million of loans made by the Department of Finance, meaning that the agency has reduced its indebtedness by €1.049 billion in just over one year.

The agency said Minister for Finance Michael Noonan had been informed of its decision to repay the bonds.

"This is further evidence of Nama doing what it was set up to do; ensuring the repayment of loans by debtors, managing those debtors very carefully and using the proceeds to repay the bonds Nama issued to fund the whole project," said chairman Frank Daly in a statement.