Landsbankinn hf. - Company Announcement

Landsbankinn hf. issues covered bonds

Today Landsbankinn hf. concluded a closed auction of two series of non-indexed
covered bonds. In total the bank received offers for the amount of ISK 2,760m. 

LBANK CB 19, listed on Nasdaq Iceland was tapped for ISK 780m at a nominal
yield of 6.95%. Landsbankinn has previously issued ISK 960 m.kr. in the same
series and the total amount of the issuance will be ISK 1,740m after the tap
issuance. 

A new three year non-indexed series was sold today, LBANK CB 17 for the amount
of ISK 140m at a nominal yield of 6.30%. The issuance is in the amount of ISK
200m, the difference will be used for market making purposes. The bonds are
scheduled to be admitted to trading on Nasdaq Iceland on 23 October 2014. 

Straumur Investment Bank hf. will act as market maker.

The covered bonds are issued in accordance with a licence from the Financial
Supervisory Authority (FME), with the reference to Act no. 11/2008 and Rules
no. 528/2008. Further information on the bonds and the cover pool is available
on Landsbankinn‘s website, www.landsbankinn.is/covered-bonds. 



For further information:

Kolbrun Gudlaugsdottir, Investor Relations, ir@landsbankinn.is , tel:  +354 
410 4014 

Kristjan Kristjansson,  Public Relations, pr@landsbankinn.is, tel: +354 410 4011