Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki hf. issues SEK 300m 4-year Floating Rate Note

Íslandsbanki has issued a SEK 300m (ISK 4.7bn) 4-year Floating Rate Note. The
senior unsecured bond pays a quarterly coupon of 3 month Stibor + 310bp.
 Investors from Sweden, Norway and continental Europe subscribed for the issue
which was oversubscribed. The bond is expected to be listed on the Irish Stock
Exchange on 13 February.

The transaction was issued under Íslandsbanki's USD 750m Global Medium Term Note
(GMTN) Programme. The GMTN Base Prospectus and its Supplements are available at
www.islandsbanki.is/ir.

The transaction was arranged by Pareto Securities AB in Stockholm.

For further information:

  * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
    tel: +354 440 4752.
  * Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel:
    +354 440 3678.


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