Íslandsbanki hf. - Company Announcement

Islandsbanki hf.: Upcoming covered bond auction

Íslandsbanki hf. will be holding an auction on covered bonds Thursday 14(th)
January 2016.  The 4-year non-indexed issue, ISLA CB 19, and the 7-year CPI-
linked issue, ISLA CBI 22, will be offered to investors.

This is the Bank's first offering of covered bonds in 2016 but the total
issuance of benchmark covered bonds is estimated to be ISK 20-30 billion in
2016. A precise domestic issuance plan may be found on the Bank's website:
https://www.islandsbanki.is/english/investor-relations/funding/covered-bonds/

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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