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

Islandsbanki hf.: Upcoming covered bond auction 23 May

Íslandsbanki hf. will be holding an auction on covered bonds Tuesday 23 May
2017.

The CPI-linked issues ISLA CBI 22, ISLA CBI 24 and ISLA CBI 30 will be offered
to investors. ISLA CBI 30 is a new benchmark issue. The issues are expected to
be listed on Nasdaq Iceland on 30 May.

Íslandsbanki Capital Markets will manage the auction. 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.


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