Arion Bank hf. - Company Announcement

Arion Bank reaches agreement with MP Bank on market making for covered bonds

Arion Bank hf. and MP Bank hf. have signed a Market Making Agreement, where MP
Bank hf. will act as a market maker for Covered Bonds issued by Arion Bank hf.,
which have been admitted to trading on the Icelandic stock exchange, Nasdaq
Iceland (ARION CB 15, ARION CBI 19, ARION CBI 21, ARION CBI 29, ARION CBI 34). 

The main terms of the agreement are:

The minimum bid and ask offer is ISK 20,000,000 at nominal value. The maximum
bid-ask spread is determined by the maturity dates of the bonds in the relevant
bond series. The market maker shall  renew offers within 15 minutes after they
were accepted or cancelled. The maximum obligated total trades per day is ISK
60,000,000 at nominal value. 

The agreement is effective as of 16 January 2015. The agreement is of unlimited
duration but can be terminated with 30 days‘ notice or by mutual agreement. 


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