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 5.20% (price: 97.4385).

Bids  for ISK  340m were accepted.  Prior to  the auction  the total outstanding
commercial paper amounted to ISK 4.64bn.

The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 29 December 2014 on Nasdaq Iceland.

For further information:

  * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
    tel: +354 440 4752.
  * Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel:
    +354 844 3678.


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