Arion Bank hf. - Company Announcement

Arion Bank hf. completes bond offering

On Friday 11 May Arion Bank hf. completed its first non-indexed fixed rate
covered bond offering, issuing ISK 1.2 billion worth of bonds in the series
Arion CB 15. 

The series is expected to be admitted for trading on NASDAQ OMX Iceland in May.
Further information regarding the listing will be available at a later date.
The bonds bear 6.50% interest and mature in 2015. 

Höskuldur H. Ólafsson, CEO of Arion Bank:
„With this bond offering Arion Bank becomes the first of the Icelandic banks to
offer fixed rate covered bonds that are not inflation linked. The Bank has in
recent months taken the initiative in the non-indexed mortgage market by
introducing innovative new products and the bond offering now is a logical next
step. The bond offering also further diversifies the banks funding profile.” 



For furter information please contact: Haraldur Gudni Eidsson, Arion Bank's
Corporate Communications, tel: + 354 856 7108, haraldur.eidsson@arionbanki.is.