Íslandsbanki hf. - Other information disclosed according to the rules of the Exchange

Islandsbanki hf.: Íslandsbanki successfully issues innovative EUR 300m callable 6-year bond (6NC5)

Íslandsbanki has today issued a EUR 300m 6NC5 1.125% fixed rate senior unsecured
bond, at a spread of 75 basis points over 5-year mid-swaps.

The issue was more than four times oversubscribed, with total demand for the
transaction amounting to EUR 1,255m from 121 investors. The bonds were sold to a
diversified spectrum of investors, including in the UK, continental Europe,
Scandinavia and Asia. The bond is expected to be listed on the Irish Stock
Exchange on 19 January 2018.

This issue, the longest-dated and most tightly-priced benchmark bond from an
Icelandic financial institution since 2008, is a significant achievement for the
Bank.

The bonds will be issued under Íslandsbanki's USD 2,000m Global Medium Term Note
(GMTN) Programme. The GMTN Base Prospectus and its supplements are available at
www.islandsbanki.is/ir.

Joint bookrunners on the transaction were Goldman Sachs International, J.P.
Morgan and Nomura.

Jon Gudni Omarsson, CFO of Íslandsbanki:

"Recent spread developments for the Bank's bonds issued in foreign currencies
have been very positive which demonstrates investors' continued confidence in
the Bank and the Icelandic economy. Today's issue clearly reflects this and we
are very pleased with the transaction and the great interest we received from
investors."


For further information:
  * Investor Relations - Gunnar S. Magnusson, ir@islandsbanki.is and tel:
    +354 440 4665.



*This press release may contain "forward-looking statements," involving
uncertainty and risks that could cause actual results to differ materially from
results expressed or implied by the statements. Íslandsbanki hf. undertakes no
obligation and does not intend to update these forward-looking statements to
reflect events or circumstances occurring after this press release. It is the
investor's responsibility to not place undue reliance on these forward-looking
statements which only reflect the date of this press release. Forward-looking
statements should not be considered as guarantees or predictions of future
events and all forward-looking statements are qualified in their entirety by
this cautionary statement.


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