Islandsbanki hf. : Íslandsbanki sells commercial paper


Íslandsbanki  hf. has today sold 6 month commercial paper. The total issuance in
the  series cannot exceed ISK 1.5bn in nominal terms. The auction was structured
so  that bidders submitted bids at predetermined  rate (price), at a simple rate
of 5.85% (price: 97.1428).

Bids  for ISK  740m were accepted.  Prior to  the auction  the total outstanding
commercial paper amounted to ISK 5.66bn.

The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 7 November 2014 on Nasdaq Iceland.

For further information:

  * Investor Relations - Guðbjörg Birna Björnsdóttir,
    gudbjorg.bjornsdottir@islandsbanki.is and tel: +354 440 4752.
  * Media Relations - Guðný Helga Herbertsdóttir,
    gudny.helga.herbertsdottir@islandsbanki.is and tel: +354 844 3678.


[HUG#1867349]