Íslandsbanki hf. has tapped into outstanding issues of non-indexed covered bonds listed on NASDAQ OMX Iceland. ISLA CB 15 was tapped for an amount of ISK 620,000,000 at a real yield of 6.50% and ISLA CB 16 was tapped for an amount of ISK 650.000.000 at a real yield of 6.51%. Following these latest issues, the total amount issued in ISLA CB 15 has reached ISK 3.14bn and ISLA CB 16 has reached ISK 2.35bn. In total, Íslandsbanki has now issued covered bonds amounting to ISK 24.59bn since its inaugural issue in December 2011. Sold to a broad group of investors, total appetite for the tap issue amounted to ISK 1.37bn, of which 92% of the offers were accepted. Trading is expected to commence on 29 January 2014 on the NASDAQ OMX Iceland. Market making for all of Íslandsbanki's covered bond issues is in the hands of MP bank. The bonds are issued under Act 11/2008 on Covered Bonds which obliges the issuer to fulfil strict requirements, whereby the underlying cover pool must withstand a weekly stress test with regards to interest rates and exchange rates. The issuances are regulated by the Icelandic Financial Supervisory Authority which additionally appoints an independent inspector to monitor the issuances. Special cover pool reports on the covered bond issuances are published quarterly and can be found on Íslandsbanki's web. For further information: * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel: +354 440 3187. * Media Relations - Dögg Hjaltalín, dogg.hjaltalin@islandsbanki.is and tel: +354 440 3925. [HUG#1756475]