Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Offering of covered bonds

Offering of covered bonds

Landsbankinn  will offer covered bonds for sale  via auction held on Tuesday 27
September  at 15:00. A new inflation-linked  benchmark series, LBANK CBI 28 will
be  offered for sale in addition to the inflation-linked series LBANK CBI 22 and
the non-indexed series LBANK CB 19 and LBANK CB 17.

New market-making agreements, announced on NASDAQ Iceland on 21 September 2016,
will become effective on the settlement date of the auction. Three market makers
will  submit orders in each  benchmark series for a  total amount of 240m. Until
the  new benchmark series has reach a  size of 10bn, total orders will amount to
180m.

Landsbankinn  Capital Markets will manage  the auction. For further information,
please call +354 410 7330 or email verdbrefamidlun@landsbankinn.is.


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