Íslandsbanki hf. - Company Announcement

Correction: Íslandsbanki sells commercial paper - Announcement published 2016-01-08 17:33 CET

Correction:  The  amount  of  sold  commercial  paper in series ISLA 16 0520 was
wrongly  stated in the announcement  published Friday 8(th) January. The correct
amount  is ISK  680m but not  ISK 380m and  has been  corrected in the following
announcement:

On  Friday 8(th) January  Íslandsbanki hf.  offered 4, 5 and  6 month commercial
paper  to investors. Offers  of ISK 1.42bn were  accepted but the total appetite
amounted to ISK 3.72bn.

Nominal  amount sold in series  ISLA 16 0520 was ISK 680m at  the simple rate of
6.44% (price  97.7957). Nominal amount sold in series ISLA 16 0616 was ISK 380m
at  the  simple  rate  of  6.49% (price  97.3158) and the nominal amount sold in
series ISLA 16 0721 was ISK 360m at the simple rate of 6.50% (price 96.7170).

Prior  to the  auction the  total outstanding  commercial paper  amounted to ISK
10.2bn. Trading is expected to commence on 15 January 2016 on Nasdaq Iceland.

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.


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