Íslandsbanki hf. - Company Announcement

Íslandsbanki sells commercial paper

Íslandsbanki  hf. has today offered 5 and 6 month commercial paper to investors.
Offers  of  ISK  1.62bn were  accepted  but  the  total appetite amounted to ISK
3.56bn.

Nominal  amount sold in series  ISLA 16 0520 was ISK 760m at  the simple rate of
6.50% (price 97.4830) and the nominal amount sold in series ISLA 16 0616 was ISK
860m at the simple rate of 6.55% (price 96.9997).

Prior  to the  auction the  total outstanding  commercial paper  amounted to ISK
9.5bn. Trading is expected to commence on 29 December 2015 on Nasdaq Iceland.

For further information:

  * Investor Relations - Tinna Molphy, ir@islandsbanki.is and tel:
    +354 440 3187.
  * Public Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel:
    +354 440 4005.


[HUG#1974871]