Íslandsbanki hf. - Other information disclosed according to the rules of the Exchange

Islandsbanki hf.: Upcoming covered bond auction 29 March

Íslandsbanki hf. will be holding an additional covered bond auction today,
Wednesday 29 March 2017.

The CPI-linked issues ISLA CBI 22 and ISLA CBI 26 will be offered to investors
at the same yields as were accepted in the Bank's auction on 28 March 2017. The
issues are expected to be listed on Nasdaq Iceland on 4 April 2017.

On 22 February 2017, the Financial Supervisory Authority in Iceland approved
Íslandsbanki's request to extend the permitted amount for issuing bonds under
the programme. Íslandsbanki is now permitted to issue covered bonds up to a
limit of ISK 130bn, subject to applicable conditions.

The total nominal amount of outstanding covered bonds issued by Íslandsbanki
under the programme after the auction on 28 March 2017 is ISK 69,500m.

The auction will be managed by Íslandsbanki Capital Markets which will close at
4pm today. For further information, please call: +354 440 4490 or email:
vbm@isb.is.

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.


[]