Íslandsbanki hf. has today announced an invitation to holders of its outstanding EUR500,000,000 1.750 per cent Notes due 7 September 2020 to tender their Notes for purchase by the Bank for cash payment.

The offer is part of Íslandsbanki's continuing effort to maintain a strong balance sheet position while efficiently applying surplus liquidity.

The Offer is being made on the terms and subject to the conditions contained in the Tender Offer Memorandum dated 29 November 2019 and is subject to the offer restrictions set out and as more fully described in the Tender Offer Memorandum.

Further information on the tender offer is available in the announcement made public on the Irish Stock Exchange (www.ise.ie) where the bonds are listed. Copies of the Tender Offer Memorandum are (subject to distribution restrictions) available from the Tender Agent: Lucid Issuer Services Limited (tel: +44 20 7704 0880; email: islandsbanki@lucid-is.com). Capitalised terms used in this announcement but not defined have the meaning given to them in the Tender Offer Memorandum.

The Tender offer will expire at 5 p.m. GMT on 6 December 2019. The results of the tender will be announced on 9 December and the expected settlement date is 11 December.

The Dealer Managers are NatWest Markets and UBS.