Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Covered bond offering results

Today,  Landsbankinn concluded an offering of  three series of covered bonds. In
total,  bids were received for  the amount of ISK  2,540m and bids were accepted
for ISK 720m.

LBANK  CBI  28 will  be  tapped  for  ISK  320m at 3.10% yield. Landsbankinn has
previously issued ISK 2,060m in the same series. Following the tap issuance, the
total amount issued will be ISK 2,380m.

LBANK  CB  19 will  be  tapped  for  ISK  400m at  5.65% yield. Landsbankinn has
previously  issued ISK 12,660m in  the same series.  Following the tap issuance,
the total amount issued will be ISK 13,060m.

No bids in LBANK CBI 22 were accepted.

The  bonds  are  scheduled  to  be  admitted  to trading on Nasdaq Iceland on 4
November  2016. Arion  bank,  Islandsbanki  and  Kvika  act as market makers for
covered bonds issued by Landsbankinn.

The  covered bonds are  issued in accordance  with a license  from the Financial
Supervisory  Authority (FME), with reference to act. no. 11/2008 and FME's rules
no.  528/2008. Further information on the bonds  and the cover pool is available
on Landsbankinn's website, www.landsbankinn.is/covered-bonds.


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