Arion Bank hf. - Company Announcement

Arion Bank will prepay Notes by USD 252 million

On 6 May Arion Bank will prepay Notes by USD 252,697,000 in addition to accrued
interests. The Notes amounted to USD 747,481,000 when they were issued at the
beginning of the year. The Notes are held by Kaupthing, and their issue formed
a part of the arrangements for the liberalization of capital controls in
Iceland. 

The prepayment is in accordance with the terms and conditions of the Notes,
which state that Arion Bank shall make a prepayment following further issuance
by the Bank such as the one that took place on 26 April 2016 when the bank
issued €300 million senior unsecured bonds. 

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