Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki sells commercial paper

Íslandsbanki  hf. has today sold 6 month commercial paper. The total issuance in
the series cannot exceed ISK 1.50bn in nominal terms. The auction was structured
so that bidders submitted bids at a predetermined rate (price), at a simple rate
of 6.10% (price: 97.0243).



Bids  for ISK 1.32bn were  accepted. Prior to  the auction the total outstanding
commercial paper amounted to ISK 8.53bn.



The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 17 January 2014 on the Nasdaq OMX Iceland.



For further information:



  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
    +354 440 3187.
  * Media Relations - Dögg Hjaltalín, dogg.hjaltalin@islandsbanki.is and tel:
    +354 440 3925.


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