Íslandsbanki hf. - Company Announcement

Islandsbanki hf.: Íslandsbanki concludes covered bond offering

Íslandsbanki hf. has today concluded an offering of covered bonds.

The non-indexed issue ISLA CB 19 was sold for an amount of ISK 340m at a yield
of 5.70%.

The CPI-linked issue ISLA CBI 26 was sold for an amount of ISK 1,140m at a yield
of 3.13%.

Total demand amounted to ISK 1,480m.

Trading is expected to commence on 24 October 2016 on Nasdaq Iceland.

So far this year Íslandsbanki has issued covered bonds in the amount of ISK
13,720m. The total nominal amount of outstanding covered bonds issued by
Íslandsbanki will be ISK 62,420m.

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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