Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki issues USD 35m private placement

Íslandsbanki hf. has today issued a bond with the following term sheet:

  * Issuer: Íslandsbanki hf.
  * Status: Unsecured, Unsubordinated
  * Nominal Amount: USD 35,000,000
  * Issue Date: 02 February 2016
  * Maturity Date: 02 August 2017
  * Issue Price: 100.00%
  * Interest: Floating Rate Note paying 3 month USD LIBOR + 170 bps
  * Listing: Irish Stock Exchange
  * Dealer: Merrill Lynch International
  * Documentation: Íslandsbanki's USD 750,000,000 Gobal Medium Term Programme
    (GMTN). The GMTN Base Prospectus and its Supplements are available at
    www.islandsbanki.is/ir.

This bond issue follows on the back of Standard & Poor's revision of
Íslandsbanki's outlook to positive from stable. Simultaneously, the 'BBB-/A-3'
long- and short-term counterparty credit ratings were affirmed.



For further information:

  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is,  tel
    +354 440 3187.
  * Media Relations - Edda Hermannsdottir, edda.hermannsdottir@islandsbanki.is
    and tel: +354 440 4005.


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