CORRECTION: Islandsbanki hf. : SEK 500m bond issue inaugurates GMTN Programme

| Source: Íslandsbanki hf.
This is a correction of the announcement from 17:03 06.12.2013 GMT. Reason for
the correction: Wrong heading in the Icelandic version of the release, should
state SEK 500m bond issue and not SEK 300m.
Íslandsbanki has issued its first international bond - SEK 500m (ISK 9.1bn) 4-
year Floating Rate Note. The senior unsecured bond pays a quarterly coupon of 3
month Stibor + 400bp. More than 40 investors from Sweden, Norway and Finland
subscribed for the issue which was oversubscribed. The bond is expected to be
listed on the Irish Stock Exchange on 16 December.

The bonds are issued under Íslandsbankis USD 250m Global Medium Term Note (GMTN)
Programme which was signed in July, which enables Íslandsbanki to issue bonds in
a broad range of currencies at fixed or floating interest rates.

The transaction was arranged by Pareto Securities AB in Stockholm.

Birna Einarsdóttir, CEO of Íslandsbanki:

"The issuance of an international bond is the logical next step for Íslandsbanki
and the diversification of its funding platforms. Core operations are stable,
restructuring is on track and capital and liquidity ratios are very strong. The
participation of international investors is a welcome sign of confidence in the
work that has been carried out at Íslandsbanki in recent years, and is an
endorsement of the direction that the Icelandic economy is taking.

Good access to international capital markets and increased autonomy in funding
will ensure Íslandsbanki a competitive advantage in the long term. Firstly, the
ability to serve our customers who are engaged in international trade, foreign
currency funding will help fulfil one of the key role for the Bank. Namely, to
channel funds for investment and the continued growth of the Icelandic economy.
Secondly, this transaction secures an independent source of funding, which will
enable Íslandsbanki to repay financing granted at the time of the Bank's
foundation in 2008. This represents a clear milestone for us."

Íslandsbanki was the first bank in Iceland to issue covered bonds since 2008,
and it has already established itself as the largest issuer in that market, with
outstandings totalling ISK 22bn. Íslandsbanki was also the first bank to list
commercial paper on the Icelandic Stock Exchange in February 2013 and has issued
ISK 9bn to date. "

For further information:
  * Investor Relations - Tinna Molphy,  and tel:
    +354 440 3187.
  * Media Relations - Dögg Hjaltalín, and tel:
    +354 440 3925.