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 1,500,000,000 ISK  in nominal  terms. The auction was
structured  so that bidders submitted bids at a predetermined rate (price), at a
simple rate of 6.20% (price: 96.9608).

Total  bids for a  nominal value of  ISK 1,350m were accepted. Total outstanding
commercial paper amounts to ISK 8.85bn.

The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 15 October 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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