Arion Bank hf. - Company Announcement

Issuance schedule of Arion Bank for 2017

Covered bonds

  -- Arion Bank aims to issue up to ISK 20 billion of domestic benchmark covered
     bonds in 2017.
  -- The benchmark covered bond series are the indexed series ARION CBI 21 and
     ARION CBI 29 and the non-indexed series ARION CB 22.
  -- The minimum size of each benchmark series is ISK 10 billion but the final
     size will depend on market conditions and other factors. There will be no
     further issues in the series ARION CBI 21. New benchmarks may be added in
     2017.
  -- Covered bond offerings will be held every month.  Offerings will be held on
     the first Wednesday of every month and settlement will be one week later –
     see dates below.
  -- Landsbankinn, Íslandsbanki and Kvika are market makers for the covered
     bonds. The market makers will submit bids and asks for the bonds every day.
     The minimum offers at nominal value for benchmark series shall be ISK 80
     million and the minimum amount for other series shall be ISK 20 million. In
     the case of benchmark series, if the outstanding nominal value is less than
     ISK 10 billion, the total offers shall be ISK 60 million. If the series is
     more than ISK 10 billion offers shall be ISK 80 million.

Commercial paper

  -- Arion Bank will continue its monthly offerings of commercial paper.
     Offerings will take place in mid-month and settlement is usually on the
     20th day of each month. The total issue of commercial paper is undetermined
     and will be dictated by market conditions.

EMTN and other funding

  -- The Bank intends to regularly issue abroad through its Euro Medium Term
     Note (EMTN) program.
  -- The Bank aims to issue 1-2 benchmarks a year amounting to approximately
     €300-500 million. The Bank will also hold smaller issues in Norwegian
     kroner or Swedish kronor and/or other currencies depending on the market
     conditions.
  -- Arion Bank plans to diversify its funding and will examine other funding
     options and add to its funding channels if it suits the Bank. The Bank may
     therefore issue unsecured bonds, subordinated bonds or covered bonds in
     foreign currencies and/or Icelandic krónur if there is sufficient demand
     from investors. The amounts and timing of such funding depend on the market
     conditions and the general interest of investors.



Covered bond offerings will be held on the following dates:

4 January 2017

1 February 2017

1 March 2017

5 April 2017

3 May 2017

7 June 2017

5 July 2017

2 August 2017

6 September 2017

5 October 2017 (Thursday)

1 November 2017

6 December 2017



Arion Bank reserves the right to amend this schedule, including by cancelling,
increasing or changing the offering dates, changing the amount scheduled to be
issued or making other changes as necessary, without advance notice.