Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki sells commercial paper

Íslandsbanki  hf.  has  today  sold  5 and  6 month  commercial paper. The total
issuance  in the series cannot exceed ISK  1.5bn in nominal terms. Offers of ISK
880 million  were  accepted  at  a  simple  rate  of 5.25% (price: 97.7338, ISLA
15 0921 and 97.4006, ISLA 15 1015).

Prior  to the  auction the  total outstanding  commercial paper  amounted to ISK
3.2bn. Total appetite for the issue amounted to ISK 880m. Trading is expected to
commence  on 15 April 2015 on Nasdaq  Iceland, shortname;  ISLA 15 0921 and ISLA
15 1015



For further information:

Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and tel:
+354 440 4752.

Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel:
+354 844 3678.


[HUG#1909606]