Íslandsbanki hf. - Company Announcement

Islandsbanki hf.: Upcoming covered bond auction 1 December

Íslandsbanki hf. will be holding an auction on covered bonds Thursday 1 December
2016. The non-indexed issue ISLA CB 19 and the CPI-linked issues ISLA CBI 22 and
ISLA CBI 26 will be offered to investors.  The issues are expected to be listed
on Nasdaq Iceland on 7 December.

Íslandsbanki Capital Markets will manage the auction. For further information,
please call +354 440 4490 or email vbm@isb.is

For further information:

  * Investor Relations - Tinna Molphy, ir@islandsbanki.is and tel:
    +354 440 3187.
  * Public Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel:
    +354 440 4005.


[]