Íbúðalánasjóður - Company Announcement

The HFF purchases a portfolio of asset-backed bonds for ISK 13,5 bn and increases the balance between assets and liabilities

The Housing Financing Fund (HFF) and the Central Banks subsidiary, ESÍ ehf.,
have signed an agreement to the effect that the HFF purchases asset-backed
bonds from ESÍ ehf. amounting to a total of ISK 13,5 bn. The bonds in question
are of the same kind as the HFF bought from in October 2015 and are secured by
mortgage loans issued by Arion Bank hf. The agreement is, subject to the final
approval of the Board.