Íbúðalánasjóður - Company Announcement

SIGNING OF AGREEMENTS REGARDING HFF BOND ISSUANCE AND MARKET MAKING IN THE SECONDARY MARKET

On Friday, June 26th, the Housing Financing Fund (HFF) signed agreements
regarding HFF bond issuance and market making in the secondary market. 

As of July 1st, 2015, four financial institutions are authorized to refer to
themselves as „Primary Dealers in HFF bonds”; Íslandsbanki hf., Arion banki
hf., Landsbankinn hf. and MP Bank hf. 

  -- Primary Dealers have exclusive access to HFF´s Securities Lending
     Facilities.
  -- A Primary Dealer is a market maker in the secondary market for all HFF
     bonds and submits a minimum bid at nominal value for each bond series at
     Nasdaq OMX in Iceland as follows:



  Class    Nominal Value
------------------------
HFF150224   80.000.000  
------------------------
HFF150434   70.000.000  
------------------------
HFF150644   65.000.000  
------------------------





  -- A Primary Dealer is obligated to keep the maximum spread between bid and
     ask quotes as specified in the agreements.
  -- A Primary Dealer is required to renew his/her offers within ten minutes
     after they have been accepted. If the Primary Dealer's total transaction in
     one series during that day equals ISK 500 million at nominal value, the
     Primary Dealer is entitled to diverge from the maximum spread requirement
     for that particular series for the remainder of that day.

The agreement is valid from July 1st, 2015 to June 30th, 2016. Total
compensation paid to all Primary Dealers is ISK 75 million during the term of
the agreement for market making in the secondary market.