The National Treasury Management Agency (NTMA) is expecting only limited interest from retail investors and ordinary savers in the National Solidarity Bond when it becomes available later this year. NTMA officials expect the bond, which finance minister Brian Lenihan proposed in the 2010 budget to assist the funding of the state's capital investment programme, to raise just a few hundred million euro, in line with other state savings products such as prize bonds and An Post savings accounts, certificates and savings bonds. The NTMA raises a total of €1.7bn a year from these sources.

The government will spend nearly €6.5bn this year on capital projects such as transport infrastructure, schools and hospitals and expects to spend €39bn by the end of 2016.

The National Solidarity Bond was put forward as a way for small investors to fund some of this expenditure while reaping a guaranteed return.

The bond will be available for terms of five, seven or 10 years and will pay an annual coupon as well as a bonus payment for savers who leave their money in until maturity.

Investors will be able to cash in the bonds at any time without penalty, but it has not been decided whether the bond will pay tax-free interest.