Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Covered bond offering results

Today,  Landsbankinn concluded an  offering of four  series of covered bonds. In
total,  bids were received for  the amount of ISK  6,600m and bids were accepted
for ISK 2,680m.

Bonds  in LBANK CBI  28, a new inflation-linked  benchmark series, were sold for
ISK  1,100m at 3.15% yield. In  addition the series  was tapped for ISK 960m for
bond  lending  purposes  in  relation  to  market-making. The size of the series
following the issuance will be ISK 2,060m.



LBANK  CB 19 was tapped for ISK 160m at  5.50% yield. In addition the series was
tapped  for ISK  900m for bond  lending purposes  in relation  to market-making.
Landsbankinn has previously issued ISK 11,600m in the same series. Following the
tap issuance, the total amount issued will be ISK 12,660m.

LBANK CB 17 was tapped for ISK 1,420m at 5.50% yield. In addition the series was
tapped  for ISK  900m for bond  lending purposes  in relation  to market-making.
Landsbankinn  has previously issued ISK 1,800m in the same series. Following the
tap issuance, the total amount issued will be ISK 3,400m.

No  bids in the series LBANK CBI  22 were accepted. For bond lending purposes in
relation  to market-making the series was  tapped for ISK 900m. Landsbankinn has
previously  issued ISK 16,860m in  the same series.  Following the tap issuance,
the total amount issued will be ISK 17,760m.

The bonds are scheduled to be admitted to trading on Nasdaq Iceland on 4 October
2016. On  the settlement day, new market-making agreements will become effective
with Arion bank, Islandsbanki and Kvika acting as market makers.

The  covered bonds are  issued in accordance  with a license  from the Financial
Supervisory  Authority (FME), with reference to act. no. 11/2008 and FME's rules
no.  528/2008. Further information on the bonds  and the cover pool is available
on Landsbankinn's website, www.landsbankinn.is/covered-bonds.


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