Friends First, the financial services group, has raised a €50 million (£39 million) syndicated bank loan to fund the development of its finance division.

The company which is part of the Eureko Alliance group, said the funds would be used to expand into mainstream leasing and hire purchase activities.

"We are currently consolidating our position as a broadly based financial services provider and our finance house will provide us with a very strong platform from which to achieve this" said managing director, Mr Adrian Hegarty.

The loan, in the form of a revolving five-year facility, with a maturity of five years, was arranged by Banque Nationale de Paris and participants include Allied Irish Capital Markets, ABN-Amro and Banca Commerciale Italiana.