Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Covered bond offering results

Today,  Landsbankinn concluded  an offering  of two  series of covered bonds. In
total,  bids were received for  the amount of ISK  3,280m and bids were accepted
for ISK 1.460m.

LBANK  CB 19, a non-indexed series listed on  Nasdaq Iceland, was tapped for ISK
1.460m at  a 6.71% yield. Landsbankinn has  previously issued ISK 10,140m in the
same series. Following the tap issuance, the total amount issued is ISK 11,600.

No bids in the inflation-linked series LBANK CBI 22 were accepted.

The  bonds are scheduled to  be admitted to trading  on Nasdaq Iceland on 31 May
2016 with Kvika acting as market maker.

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.


[HUG#2015170]