Arion Bank hf. - Other information disclosed according to the rules of the Exchange

Correction: Arion Bank: Covered bond offering results - Published 2017-05-03 19:10:05

Correction - In total Arion Bank has issued ISK 71,260 m of covered bonds not
70,300 as previously stated. 



Today Arion Bank hf. concluded the sale of three covered bond series.

The total demand in the issue amounted to ISK 4,020 million and 25 bids were
received. 

The inflation-linked issue ARION CBI 25 attracted 16 bids of ISK 3,440 million
in total at a yield of 2.92% - 3.13%. Bids for ARION CBI 25 amounting to ISK
1,300 million at a yield of 2.96% were accepted. The size of the series
following the issuance will be ISK 4,040 m. 

The fixed rate issue ARION CB 22 attracted 7 bids of ISK 520 million in total
at a yield of 5.32% - 5.36%. All bids were rejected at this time. 

The fixed rate issue ARION CB 19 attracted 2 bids of ISK 60 million at 5.29% -
5.30% yield. All bids were rejected at this time. 

The issued bonds were tap issues of existing covered bond series that have been
admitted to trading on Nasdaq Iceland on 10 May 2017. 

According to Arion Bank’s issuance schedule the next auction of covered bonds
is on 7 June 2017. 

In total Arion Bank has issued ISK 71,260 m of covered bonds.

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 856
7108.