Landsvirkjun - Company Announcement

Landsvirkjun - Bond Issue

Landsvirkjun (The National Power Company) completed on 13 January 2015 an
auction of a 10 year bond for an amount of USD 30 million with offers received
amounting to a total of USD 54 million. The bond carries a fixed interest rate
of 4.3% with semi-annual interest payments and a single principal payment at
maturity. 

The bond is issued with approval from the Central bank of Iceland and sold to
Icelandic pension funds. Furthermore the bond is issued under the Company's
EMTN (Euro Medium Term Note) program without a guarantee of collection, and
will be listed in the Luxembourg Stock Exchange. Dealer for the transaction is
Íslandsbanki. 

The proceeds of the bonds will be used for general refinancing purposes.

For further information please contact Rafnar Larusson, CFO at +354 515 9000 or
by email: rafnar@lv.is