Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Covered bond offering results

Today,  Landsbankinn concluded  an offering  of two  series of covered bonds. In
total,  bids were received for  the amount of ISK  2,400m and bids were accepted
for ISK 720m.

LBANK  CBI 22, an inflation-linked  series listed on  Nasdaq Iceland, was tapped
for  ISK 720m at 3.50% yield. Landsbankinn  has previously issued ISK 16,140m in
the same series. Following the tap issuance, the total amount issued will be ISK
16,860m.

No bids in the non-indexed series LBANK CB 19 were accepted.

The bonds are scheduled to be admitted to trading on Nasdaq Iceland on 23 August
2016 with Kvika acting as market maker.

The  covered bonds are  issued in accordance  with a license  from the Financial
Supervisory  Authority (FME), with reference to act. no. 11/2008 and FME's rules
no.  528/2008. Further information on the bonds  and the cover pool is available
on Landsbankinn's website, www.landsbankinn.is/covered-bonds.


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