Arion Bank hf. - Company Announcement

Arion Bank covered bond tap issue

Today Arion Bank hf. concluded the sale of three covered bond series listed on
Nasdaq OMX Iceland. 

The inflation-linked issue ARION CBI 21 attracted 4 bids of ISK 320 million in
total at a yield of 3.40% - 3.44%. Bids for ARION CBI 21 amounting to ISK 260
million at a yield of 3.40% were accepted. 

The inflation-linked issue ARION CBI 29 attracted 4 bids of ISK 440 million in
total at a yield of 3.19%-3.20%. All bids for the inflation-linked issue ARION
CBI 29 were rejected at this time. 

The fixed rate issue ARION CB 22 attracted 7 bids of ISK 880 million in total
at a yield of 5.66% - 5.75%. Bids for ARION CB 22 amounting to ISK 880 million
at a yield of 5.75% were accepted. 

The total demand in the tap issue amounted to ISK 1,640 million and 15 bids
were received. 

The issued bonds were tap issues of existing covered bond series that have been
admitted to trading on Nasdaq OMX Iceland According to Arion Bank’s issuance
schedule the next auction of covered bonds is on 7 December 2016. 

In 2016 Arion Bank has issued a total of ISK 22,140m of covered bonds. In total
Arion Bank has issued ISK 59,300m of covered bonds. 

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