Kaupthing Bank Issues Subordinated Bonds



Kaupthing Bank hf. has issued subordinated bonds in the amount of EUR
250 million classified as Tier 1 capital according to regulation no.
156/2005 on additional own funds items for financial undertakings.
These are perpetual bonds carrying a fixed coupon of 6.75 per cent
and are callable by Kaupthing Bank five years after the date of issue
provided that the conditions of the above mentioned rules are met.

The bonds were sold to 66 investors, mostly European. The bookrunners
were Citigroup, Credit Suisse, Deutsche Bank and HSBC.

For further information please contact:
Gudni Adalsteinsson, Global Treasurer, at +354 444 6126
Jónas Sigurgeirsson, Chief Communication Officer, at + 354 444 6112.