Arion Bank hf. - Company Announcement

Arion Bank hf. covered bond tap issue

Yesterday Arion Bank hf. concluded the sale of two inflation-linked covered
onds listed on the Nasdaq OMX Iceland. 

The inflation linked issue ARION CBI 21 was tapped for an amount of ISK
2,280,000,000 at a yield of 3.10% and the inflation linked issue ARION CBI 29
was tapped for an amount of ISK 3,900,000,000 at a yield of 3.08%. 
Total amount of orders for the tap issue amounted to ISK 8,480,000,000

Bond series are indexed to the CPI and have been admitted to trading on Nasdaq
OMX Iceland. According to Arion Bank´s issuance schedule the next inflation
linked auction is in December 

Covered bonds are used to finance Arion Bank‘s retail mortgage business. Arion
Bank currently offers inflation linked retail mortgages at 3.90% fixed interest
rate for five years and 3.85% variable interest rate. 



For further information please contact Haraldur Gudni Eidsson of Arion Bank´s
communications division at haraldur.eidsson@arionbanki.is, or tel: +354 444
7108