Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki hf. issues EUR 100m 3-year Fixed Rate Note

Íslandsbanki has issued a EUR 100m (ISK 14.7bn) 2.875% Fixed Rate Note due 2018
through lead manager Deutsche Bank. The note was placed with investors in
Scandinavia and continental Europe.

Investors were offered switch terms out of Islandsbanki's existing EUR 100m note
due May 2016, and the bank bought back EUR 47.7m of those notes as a result of
the process. The new bond is expected to be listed on the Irish Stock Exchange
on 27 July 2015.

The transaction was issued under Íslandsbanki's USD 750m Global Medium Term Note
(GMTN) Programme. The GMTN Base Prospectus and its Supplements are available at
www.islandsbanki.is/ir.

For further information:

  * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
    tel: +354 440 4752.
  * Media Relations - Dögg Hjaltalín, pr@islandsbanki.is and tel: +354 844 3925.


[HUG#1940030]