Islandsbanki hf. : Islandsbanki sells commercial p

Islandsbanki hf. has today sold 1, 2, 4 ,5 and 6 month commercial paper. The total issuance in each series cannot exceed 1,500,000,000 ISK in nominal terms. The auction was structured so that bidders submitted bids at predetermined rates (prices). The 1 month commercial paper was offered at a simple rate of 5.90% (price: 99.5594), the 2 month commercial paper at a simple rate of 6.05% (price: 98.8373), the 4 month commercial paper at a simple rate of 6.20% (price: 97.9917), the 5 month commercial paper at a simple rate of 6.25% (price: 97.2809) and the 6 month commercial paper at a simple rate of 6.30% (price: 96.9133). Total demand in the auction was ISK 5.23bn. Total bids for a nominal value of ISK 130m were accepted for the 1 month commercial paper, ISK 530m for the 2 month commercial, ISK 800m for the 4 month commercial paper, ISK 1,200m for the 5 month commercial and ISK 1,500m for the 6 month commercial paper. Total outstanding commercial paper amounts to ISK 8.81bn. The commercial paper was sold to a broad group of investors. Trading is expected to commence on 19 July on the Nasdaq OMX Iceland. For further information: * Investor Relations - Jóhann Ottó Wathne, johann.wathne@islandsbanki.is and tel: +354 440 4607. * Media Relations - Már Másson, mar.masson@islandsbanki.is, and tel: +354 440 4990 [HUG#1716217]