Íslandsbanki hf. - Company Announcement

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.
Offers  of ISK 1,060m were accepted. Nominal amount sold in series ISLA 16 0212
was ISK 560m at the simple rate of 6.45% (price 97.4849) and sold in series ISLA
16 0321 was ISK 500m at the simple rate of 6.50% (price 96.8184).

 Prior  to the  auction the  total outstanding  commercial paper amounted to ISK
3.2bn. Total  appetite for the issue amounted to ISK 1,940m. Trading is expected
to commence on 21 September 2015 on Nasdaq Iceland, shortnames; ISLA 16 0212 and
ISLA 16 0321.

 For further information:

 Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and tel:
+354 440 4752.

 Media Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel:
+354 440 4005.


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