Landsbankinn hf. - Company Announcement

Landsbankinn hf.: Covered bond offering results

Today,  Landsbankinn concluded the final covered  bond auction of the year where
four series of covered bonds were offered for sale.

In  total, 20 bids  were received  in the  auction for  the total  amount of ISK
2,500m.

A  total  of  3 bids  for  ISK  540m were  received in the series LBANK CB 19 at
5.49%-5.55% yield.  All  bids  in  the  series  were  accepted  at  5.55% yield.
Following the tap issuance, the total amount issued will be ISK 14,500m.

A  total  of  7 bids  for  ISK  660m were  received in the series LBANK CB 21 at
5.52%-5.57% yield. No bids in the series were accepted.

A  total of  3 bids for  ISK 340m were  received in  the series  LBANK CBI 22 at
3.19%-3.21% yield.  All  bids  in  the  series  were  accepted  at  3.21% yield.
Following the tap issuance, the total amount issued will be ISK 18,740m.

A  total of  7 bids for  ISK 960m were  received in  the series  LBANK CBI 28 at
3.01%-3.06% yield.  All  bids  in  the  series  were  accepted  at  3.06% yield.
Following the tap issuance, the total amount issued will be ISK 3,340m.

The  bonds are  scheduled to  be admitted  to trading  on Nasdaq  Iceland on 22
December  2016. Arion banki,  Islandsbanki and  Kvika act  as market  makers for
covered bonds issued by Landsbankinn.

The  covered bonds are  issued in accordance  with a license  from the Financial
Supervisory  Authority (FME), with reference to act. no. 11/2008 and FME's rules
no.  528/2008. Further information on the bonds  and the cover pool is available
on Landsbankinn's website, www.landsbankinn.is/covered-bonds.


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