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 1,740m.

The non-indexed issue ISLA CB 19 was sold for an amount of ISK 500m at a yield
of 5.30%. Total offers received amounted to ISK 520m ranging from 5.29% -
5.32%. Following the tap issuance, the total amount issued will be ISK 10.020m.

The CPI-linked issue ISLA CBI 22 was sold for an amount of ISK 60m at a yield of
3.10%. Total offers received amounted to ISK 60m at 3.10%. Following the tap
issuance, the total amount issued will be ISK 8.320m.

The CPI-linked issue ISLA CBI 26 was sold for an amount of ISK 1.160m at a yield
of 3.05%. Total offers received amounted to ISK 1.160m ranging from 2.99% -
3.05%. Following the tap issuance, the total amount issued will be ISK 21.040m.

Trading is expected to commence on 4 April 2017 on Nasdaq Iceland.

The  total nominal  amount of  outstanding covered  bonds issued by Íslandsbanki
will be to ISK 69,500m 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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