Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : ISK 3bn of Commercial Paper sold

Íslandsbanki  hf.  has  today  sold  5 and  6 month  commercial paper. The total
issuance  in each series  cannot exceed ISK  1.5bn in nominal terms. The auction
was  structured so that bidders submitted  bids at predetermined rates (prices).
The  5 month commercial paper at a simple rate of 6.15% (price: 97.4528) and the
6 month commercial paper at a simple rate of 6.20% (price: 96.9770).

Total  bids for  a nominal  value of  ISK 1.5bn for  the 5 month commercial were
accepted  and  ISK  1.5bn for  the  6 month  commercial paper. Total outstanding
commercial paper amounts to ISK 10.45bn.

The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 20 September on the Nasdaq OMX Iceland.



For further information:

Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
+354 440 3187.

Media Relations - Dögg Hjaltalín, dogg.hjaltalin@islandsbanki.is and tel:
+354 440 3925.


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