Arion Bank hf. - Company Announcement

Arion Bank hf. covered bond tap issue

Today Arion Bank hf. concluded the sale of two inflation-linked covered bonds
listed on the Nasdaq Iceland. 

The inflation linked issue ARION CBI 21 was tapped for an amount of ISK
1,180,000,000 at a yield of 3.25% and the inflation linked issue ARION CBI 29
was tapped for an amount of ISK 2,020,000,000 at a yield of 3.30%. Total amount
of orders for the tap issue amounted to ISK 4.34 bn. 

Bond series are indexed to the CPI and have been admitted to trading on Nasdaq
Iceland. According to Arion Bank´s issuance schedule the next inflation linked
auction is in June. 



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