Arion Bank hf. - Company Announcement

Arion Bank: Covered bond offering results

Today Arion Bank hf. concluded the sale of three covered bond series.

The total demand in the issue amounted to ISK 3,420 million and 20 bids were
received. 

The inflation-linked issue ARION CBI 29 attracted 7 bids of ISK 760 million in
total at a yield of 3.02%-3.10%. Bids for ARION CBI 29 amounting to ISK 1,420
million at a yield of 3.07% were accepted. Following the tap issuance, the
total amount issued will be ISK 24,500 m. 

The fixed rate issue ARION CB 22 attracted 8 bids of ISK 1,160 million in total
at a yield of 5.47% - 5.54%. Bids for ARION CB 22 amounting to ISK 1,040
million at a yield of 5.50% were accepted. Following the tap issuance, the
total amount issued will be ISK 21,200 m. 

The fixed rate issue ARION CB 19 attracted 5 bids of ISK 760 million at
5.45%-5.50% yield. Bids for ARION CB 19 amounting to ISK 160 million at a yield
of 5.45% were accepted. Following the tap issuance, the total amount issued
will be ISK 1,700 m 

The issued bonds were tap issues of existing covered bond series that have been
admitted to trading on Nasdaq OMX Iceland on 11 January 2017. 

According to Arion Bank’s issuance schedule the next auction of covered bonds
is on 1 February 2017. 

In total Arion Bank has issued ISK 64,620m of covered bonds.

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 856
7108.