Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Covered bond offering results

Today, Landsbankinn concluded an offering of four series of covered bonds.

In  total, 35 bids  were received  in the  auction for  the total  amount of ISK
5,440m.

A  total  of  5 bids  for  ISK  900m were  received in the series LBANK CB 19 at
5.77%-5.80% yield.  All  bids  in  the  series  were  accepted  at  5.80% yield.
Following the tap issuance, the total amount issued will be ISK 13,960m.

A  total of 13 bids  for ISK 2,040m were  received in the  series LBANK CB 21 at
5.67%-5.99% yield.  Bids for ISK 700m were  accepted at 5.82% yield. In addition
the  series was  tapped for  ISK 960m for  bond lending  purposes in relation to
market-making. The size of the series following the issuance will be ISK 1,660m.

A  total of  3 bids for  ISK 640m were  received in  the series  LBANK CBI 22 at
3.39%-3.40% yield.  All  bids  in  the  series  were  accepted  at  3.40% yield.
Following the tap issuance, the total amount issued will be ISK 18,400m.

A  total of 14 bids for  ISK 1,860m were received in  the series LBANK CBI 28 at
3.19%-3.25% yield. No bids in the series were accepted.

The  bonds are  scheduled to  be admitted  to trading  on Nasdaq  Iceland on 30
November  2016. Arion banki,  Islandsbanki and  Kvika act  as market  makers for
covered bonds issued by Landsbankinn.

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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