Lánamál ríkisins - Company Announcement

Republic of Iceland issues US Dollar bonds

Iceland has today issued a USD 1 billion Reg S / 144A bond offering due in
2022. This is a fixed rate bond with a 6,0% yield. The transaction was well
received by global investors with an order book 4 times oversubscribed. The
bonds were predominantly placed with US and European accounts. The transaction
followed a three day investor roadshow in the US and Europe. The issue was
lead-managed by Deutsche Bank,J.P. Morgan and UBS Investment Bank. 

“This transaction is an important milestone for Iceland and is very positive
for the Icelandic economy“, says Finance Minister Oddný Harðardóttir. “It
follows last year‘s successful re-entry to the international bond markets. We
are very pleased with the broad spectrum of investor´s interest. Compared to
last year's issue this transaction attracted twice the number of investors and
double the size of the order book. This marks another step in implementing our
medium-term debt management strategy where the aim is to secure regular access
to the international capital markets and further broaden the investor base."

This announcement does not constitute an offer to sell or the solicitation of
an offer to buy securities in the United States or any other jurisdiction. Any
offering of securities will not be registered under the United States
Securities Act of 1933, as amended (the "Securities Act") or any relevant
securities laws of any state or other jurisdiction and may not be offered or
sold in the United States absent registration or an exemption from registration
under the Securities Act.  Accordingly, the securities to which this
announcement relates would be offered and sold only (1) inside the United
States to “Qualified Institutional Buyers”, as defined in, and in reliance on,
Rule 144A under the Securities Act and (2) outside the United States to non-US
persons in reliance on Regulation S under the Securities Act. There will be no
public offering of the securities in the United States. 

This announcement is being distributed only to, and is directed at (a) persons
who have professional experience in matters relating to investments who fall
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (as amended, the “Order”), (b) persons falling within
Article 49(2)(a) to (d) (high net worth entities, unincorporated associations
etc.), (c) persons outside the United Kingdom and (d) other persons to whom it
may otherwise lawfully be communicated (all such persons together being
referred to as “relevant persons”). The investments or investment activity to
which this announcement relates are available only to, and any invitation,
offer or agreement to subscribe, purchase or otherwise acquire such investments
will be available only to or will be engaged in only with, relevant persons.
Any person who is not a relevant person should not act or rely on this document
or any of its contents. Persons distributing this announcement must satisfy
themselves that it is lawful to do so.