Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Commercial paper listed on Nasdaq OMX Iceland

Íslandsbanki is the first financial institution to list commercial paper.

Íslandsbanki hf. has today sold 3 and 6 month commercial paper. The total
issuance in each series cannot exceed 1,500,000,000 ISK in nominal terms. The
auction was structured so that bidders submitted bids at predetermined rates
(prices). The 3 month commercial paper was sold at a simple rate of 6.15%
(price: 98.4692) and the 6 month commercial paper was sold at a simple rate of
6.30% (price: 96.9133).

The three month commercial paper was oversubscribed. Total bids for a nominal
value of 2,740,000,000 ISK were submitted and bids were accepted for a nominal
value of 1,500,000,000 ISK. The six month commercial paper was also
oversubscribed. Total bids for a nominal value of 1,550,000,000 ISK were
submitted and bids were accepted for a nominal value of 1,500,000,000 ISK.

The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 5 April 2013 on the Nasdaq OMX Iceland. Íslandsbanki hf. will be
the first financial institution in Iceland to list commercial paper on the
Icelandic stock exchange since the fall of 2008.


For further information:

  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
    +354 440 3187.
  * Media Relations - Guðný Helga Herbertsdóttir,
    gudny.helga.herbertsdottir@islandsbanki.is and tel: +354 440 3678 / mob:
    +354 844 3678.

[HUG#1687681]