Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki sells commercial paper

Íslandsbanki  hf. has today offered 5 and 6 month commercial paper to investors.
The  total issuance  in each  series cannot  exceed ISK  1.5bn in nominal terms.
Nominal  amount  sold  in  series  ISLA  15 1229 was  ISK  760m at  6.10% (price
97.2802). No  offers were  accepted for  ISLA 16 0114. Prior  to the auction the
total outstanding commercial paper amounted to ISK 2.9bn. Total appetite for the
issue  amounted to ISK 960m. Trading is  expected to commence on 17 July 2015 on
Nasdaq Iceland, shortname; ISLA 15 1229.

 For further information:

  *  Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
    tel: +354 440 4752.
  *  Media Relations - Már Másson, pr@islandsbanki.is and tel: +354 440 4990.


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