Islandsbanki hf. : First Euro-denominated bond issue of EUR 100m

        Print
| Source: Íslandsbanki hf.
Islandsbanki has issued a EUR 100m (ISK 15.6bn) bond, the Bank's first Euro-
denominated bond issue. The senior unsecured 2-year bond has a fixed rate of
3%. The bond is expected to be listed on the Irish Stock Exchange on 16 May
2014.

The bonds are issued under Islandsbanki's Global Medium Term Note (GMTN)
Programme which enables Islandsbanki to issue bonds in a broad range of
currencies at fixed or floating interest rates. Prior to the bond issue, the
Bank increased the size of the Bank's GMTN programme to USD 275m from USD 250m.
The GMTN Base Prospectus and its Supplements are available at
www.islandsbanki.is/ir.

The transaction was arranged by Deutsche Bank AG.

Birna Einarsdottir, CEO of Islandsbanki:
"A EUR-denominated issue is a clear milestone for us. The EUR 100m issue follows
on the back of our recently published BB+/B rating from S&P, and successful SEK
issue in December and tap issue in March.

The terms show continued improvement, and are a welcome sign of confidence in
Íslandsbanki  and its recovery path in creating a strong and responsible bank.
Our core operations are delivering stable and recurring revenues, restructuring
is on track, and capital and liquidity ratios remain strong. "

For further information:
·         Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is  and
tel: +354 440 3187.
  * Media Relations - Dögg Hjaltalin, dogg.hjaltalin@islandsbanki.is and tel:
    +354 440 3925.


[HUG#1783570]