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

Islandsbanki hf.: Concludes covered bond offering

Íslandsbanki  hf. has  today concluded  an additional  offering of covered bonds
following the Bank's auction yesterday, 28 March 2017.

Total demand in today's auction amounted to ISK 3,340m.

The CPI-linked issue ISLA CBI 22 was sold for an amount of ISK 1,500m at a yield
of 3.10%. Total offers received amounted to ISK 1,500m at 3.10%. Following the
tap issuance, the total amount issued will be ISK 9,820m.

The CPI-linked issue ISLA CBI 26 was sold for an amount of ISK 1,840m at a yield
of 3.05%. Total offers received amounted to ISK 1,840m at 3.05%. Following the
tap issuance, the total amount issued will be ISK 22,880m.

Trading is expected to commence on 4 April 2017 on Nasdaq Iceland.

The  total nominal  amount of  outstanding covered  bonds issued by Íslandsbanki
will be to ISK 72,840m after the auction.

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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