Arion Bank hf. - Company Announcement

Arion Bank completes tap issue in euros

Arion Bank has today issued an additional €200 million tap of the Euro
benchmark bond issued December 2016. The Bank previously issued €300 million
bringing the total to €500 million, or approximately ISK 60 billion. As before,
part of the issue will be used to pay down existing loans. 

The bonds have a December 2021 maturity and bear a fixed 1.625% coupon and were
sold at terms equivalent to 1.55% over interbank rates. Barclays and Deutsche
Bank arranged the tap issue for Arion Bank. Bids from more than 20 investors
were received and total demand exceeded €200 million. 

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444
7108.