BANK of Ireland Business Banking has completed a special Ђ300m funding arrangement with KfW (Kreditanstalt fr Wiederaufbau), the German state-owned development bank.
The new arrangement will provide funding for privately owned small- to medium-sized companies (SMEs).
The finance is being made available to Bank of Ireland from KfW in the form of a 'global loan' - wholesale funding for the support of the economy via banks.
The agreement also requires the continued investment by Bank of Ireland in specialist support services for SMEs.
Ireland is one of ten western European countries in which KfW has concluded such global loan arrangements.
Tom Comerford, director, Bank of Ireland Business Banking said: "On the lending side it will enhance our highly competitive offering to this market.
"The KfW arrangement will also enable Bank of Ireland to invest further in its support and information services to small companies."
