Íbúðalánasjóður - Company Announcement

SIGNING OF AGREEMENTS REGARDING HFF BOND ISSUANCE AND MARKET MAKING IN THE SECONDARY MARKET

                                        

On Monday, June 20th, the Housing Financing Fund (HFF) signed agreements
regarding HFF bond issuance and market making in the secondary market. 

As of July 1st, 2016, Landsbankinn hf. is authorized to refer to itself as
„Primary Dealer in HFF bonds”. 

  -- Primary Dealer has exclusive access to HFF´s Securities Lending Facilities.
  -- Primary Dealer is a market maker in the secondary market for all HFF bonds
     and submits a minimum bid at nominal value for each bond series at Nasdaq
     OMX in Iceland as follows:

                                        

  Class    Nominal Value
------------------------
HFF150224   70.000.000  
------------------------
HFF150434   60.000.000  
------------------------
HFF150644   55.000.000  
------------------------

                                        



  -- Primary Dealer is obligated to keep the maximum spread between bids and ask
     quotes as specified in the agreements.
  -- Primary Dealer is required to renew his/her offers within ten minutes after
     they have been accepted. If the Primary Dealer’s total transaction in one
     series during that day equals ISK 300 million at nominal value, the Primary
     Dealer is entitled to diverge from the maximum spread requirement for that
     particular series for the remainder of that day.

The agreement is valid from July 1st, 2016 to June 30th, 2017.