Arion Bank hf. - Company Announcement

Arion Bank issues bonds in euros

On Wednesday 24 November, Arion Bank issued new senior unsecured bonds for a
total of €300 million. The bonds are 5-year instruments. Orders totaling over
€400 million from more than 50 investors were received. The bonds have a fixed
coupon of 1.625% and were sold at rates corresponding to a 1.65% margin over
interbank rates. Arion Bank mandated Barclays, Citi, Deutsche Bank and Morgan
Stanley for the transaction. 

This represents the third euro benchmark issue by Arion Bank and the aim is to
use some of the proceeds to pay down other funding. 

This bond issuance is yet another step in a targeted effort to diversify
funding in recent years and follows a recent upgrade in credit rating. Arion
Bank is today rated BBB with a positive outlook by Standard & Poor’s. 

Höskuldur H. Ólafsson, CEO of Arion Bank:

“Arion Bank´s terms on the international credit markets are steadily improving.
This is of great importance to both us and our customers. Improved terms
reflect the greater level of confidence towards the Bank and enable us to
compete more effectively.” 



For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444
7108.