CRH soared 9.2% yesterday buoyed by a $650m (€410m) bond issue as well as the rise in US housing starts

The increase is part of a broader rally across construction-related stocks in recent weeks.

The sector was also buoyed by strong US housing starts data, which rose by 9.1% to 1.066m units in June although this was in part attributed to a change to New York building codes.

The rise was mainly concentrated in the apartment buildings sector.

CRH, which had between €6bn and €6.5bn in debt at the end of June, told analysts earlier this month that it would start refinancing debt that matures in 2009 over the second half of this year.

Its stock has fallen in recent weeks after the group warned its profits would fall this year for the first time in over ten years.

"CRH has debt of €2.2bn maturing in 2009 ... and this move represents standard treasury management," said John Sheehan, analyst with NCB Stockbrokers.

"CRH's cash generation remains strong and its diversity has provided it with a greater degree of stability than many rivals. The group indicated on July 2 that tougher markets would see capital expenditure pared back by €200m to €300m below our previous estimates," Mr Sheehan said.

The group sold its $650m notes, which mature in 10 years, for an annual interest rate of 8.125%. The group's last 10-year bond sale was priced at 6% in 2006.

"This latest issuance reflects the company's ongoing management of the maturity profile of its debt," said Goodbody analyst Robert Eason.

CRH last raised money in the debt markets in April of this year with a £250m (€315m) note in the UK market. The seven-year bond carries a coupon of 7.3%.