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

Islandsbanki hf.: Concludes covered bond offering

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

Total demand amounted to ISK 5,000m.

The non-indexed issue ISLA CB 19 was sold for an amount of ISK 820m at a yield
of 5.27%. Total offers received amounted to ISK 900m ranging from 5.14% -
5.30%. Following the tap issuance, the total amount issued will be ISK 10,840m.

The CPI-linked issue ISLA CBI 22 was sold for an amount of ISK 3,100m at a yield
of 3.20%. Total offers received amounted to ISK 3,100m ranging from 3.15% -
3.20%. Following the tap issuance, the total amount issued will be ISK 12,920m.

The CPI-linked issue ISLA CBI 26 was sold for an amount of ISK 660m at a yield
of 2.97%. Total offers received amounted to ISK 1,000m ranging from 2.92% -
3.00%. Following the tap issuance, the total amount issued will be ISK 23,540m.

Trading is expected to commence on 2 May 2017 on Nasdaq Iceland.

The total nominal amount of outstanding covered bonds issued by Íslandsbanki
will be to ISK 77,420m 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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