Íslandsbanki hf. - Company Announcement

Islandsbanki hf.: Upcoming covered bond auction 18 October

Íslandsbanki hf. will be holding an auction on covered bonds Tuesday 18(th)
October 2016. The non-indexed issue ISLA CB 19 and the CPI-linked issue ISLA CBI
26 will be offered to investors.  The issues are expected to be listed on Nasdaq
Iceland on 24 October.

A domestic issuance plan may be found on the Bank's website:
https://www.islandsbanki.is/english/investor-relations/funding/covered-bonds/.

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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