Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki sells commercial paper

Today  Íslandsbanki hf. offered 4 and 6 month commercial paper to investors. The
total  issuance in each series cannot exceed ISK 1.5bn in nominal terms. Nominal
amount  sold in  series ISLA  15 1106 was ISK  460m at 6.00% (price 97.8793). No
offers were accepted for ISLA 15 1229.

Prior  to the  auction the  total outstanding  commercial paper  amounted to ISK
2.8bn. Total appetite for the issue amounted to ISK 800m. Trading is expected to
commence on 29 June 2015 on Nasdaq Iceland, shortname; ISLA 15 1106.

For further information:

  * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
    tel: +354 440 4752.
  * Media Relations - Már Másson, pr@islandsbanki.is and tel: +354 440 4990.


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