Islandsbanki hf. : Íslandsbanki sells commercial paper


Íslandsbanki  hf.  has  today  sold  4 and  6 month  commercial paper. The total
issuance  in each series  cannot exceed ISK  1.5bn in nominal terms. The auction
was  structured so that bidders submitted  bids at predetermined rates (prices).
The  4 month  commercial  paper  was  sold  at  a  simple  rate of 5.75% (price:
98.0886) and  the 6 month  commercial paper  at a  simple rate  of 5.85% (price:
97.1275).

Bids  for ISK 260 million were accepted for the 4 month commercial paper and ISK
740 million  for the  6 month commercial  paper. Prior  to the auction the total
outstanding commercial paper amounted to ISK 4.92bn.

The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 19 September 2014 on the Nasdaq OMX Iceland.

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#1855150]