Kópavogur, 1 April 2021

To the bondholders of:

Íslandsbanki hf SEK 1 billion Floating Rate Notes due 26 April 2022 - ISIN: XS1813048128

Íslandsbanki hf. (the “Issuer”) hereby gives notice to all bondholders of the SEK 1 billion Floating Rate Notes due 26 April 2022 with ISIN XS1813048128 issued by the Issuer (the "Bonds"), of the early redemption of all the Bonds in accordance with paragraph 18 (Issuer Call) of the Pricing Supplement dated 24 April 2018 for the Bonds (the "Redemption").

The Issuer Call Repayment Date for the Redemption will be 26 April 2021.

The Bonds will be redeemed at the Nominal Amount plus accrued but unpaid interest from and including the preceding Interest Payment Date up to, and including, the Issuer Call Repayment Date.

For further information: ir@islandsbanki.is