Føroya Banki P/F - Fyrirtækjafréttir

Føroya Banki issues a bond with individual government backed guarantee

Announcement no. 32/2009

Føroya Banki has concluded an agreement to issue a DKK 500 millions bond with
maturity on 30. November 2012. The bond will be listed on Nasdaq OMX
Copenhagen. The bond is sold to institutional investors in advance. 

The bond is issued as unsubordinated debt with a floating rate set at 6 months
Cibor + 0.12 pct. Interest is fixed two banking days prior to the start of the
interest period. Interest for the first period has been fixed on the 28.
December 2009 at 1.774 pct. p.a. 

The bond is guaranteed by Finansiel Stabilitet A/S. It is part of the
agreement announced on 16 December 2009, which gave Føroya Banki the option
to request a three-year government-backed guarantee for unsubordinated debt up
to a maximum of DKK 4.0 billion. 

Further information:
Janus Petersen, CEO, phone (+298) 330 340
Johnny í Grótinum, IR, phone (+298) 230 380