Arion Bank hf. - Company Announcement

Arion Bank hf. covered bond tap issue

Yesterday Arion Bank hf. concluded the sale of two covered bonds listed on
Nasdaq OMX Iceland. 

The inflation-linked issue ARION CBI 21 was tapped for an amount of ISK
340,000,000 at a yield of 3.06% and the fixed rate issue ARION CBI 29 was
tapped for an amount of ISK 2,980,000,000 at a yield of 6.68%. 
Total amount of orders for the tap issue amounted to ISK 6,420,000,000

The issued bonds were tap issues of existing covered bond series that have been
admitted to trading on Nasdaq OMX Iceland. According to Arion Bank’s issuance
schedule the next auction of covered bond is on 3 February 

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444
7108.