Íslandsbanki hf. - Other information disclosed according to the rules of the Exchange

CORRECTION: Islandsbanki hf.: Íslandsbanki concludes covered bond offering - Published 16:51 28.02.2017 GMT

Correction: Trading is expected to commence on 7 March 2017 on Nasdaq Iceland,
not 7 February as stated in previous release.

Íslandsbanki hf. has today concluded an offering of covered bonds.

Total demand amounted to ISK 1,860m.

The non-indexed issue ISLA CB 19 was sold for an amount of ISK 160m at a yield
of 5.33%. Total offers received amounted to ISK 200 million ranging from 5.28% -
5.37%. Following the tap issuance, the total amount issued will be ISK 9.520m.

The CPI-linked issue ISLA CBI 22 was sold for an amount of ISK 1,420m at a yield
of 3.25%. Total offers received amounted to ISK 1,420 million ranging from
3.20% - 3.25%. Following the tap issuance, the total amount issued will be ISK
8.260m.

The CPI-linked issue ISLA CBI 26 was sold for an amount of ISK 240m at a yield
of 3.05%. Total offers received amounted to ISK 240 million ranging from 3.00% -
3.05%. Following the tap issuance, the total amount issued will be ISK 19.880m.

Trading is expected to commence on 7 March 2017 on Nasdaq Iceland.

The total nominal amount of outstanding covered bonds issued by Íslandsbanki
will be to ISK 67,780m after the auction.

For further information:

  * Investor Relations - Tinna Molphy, ir@islandsbanki.is and tel:
    +354 440 3187.
  * Public Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel:
    +354 440 4005.


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