Íslandsbanki hf. (the ?Issuer? or ?Islandsbanki?) announced an invitation to holders (the ?Holders?) of its SEK 450 million floating rate notes due March 2025 (ISIN XS-2-325-591-365) and its NOK 750 million floating rate notes due March 2025 (ISIN XS-2-325-336-092) (together the ?Notes?) to tender any and all of the Notes for purchase by the Issuer for cash at a fixed purchase price as set out in the tender information document dated 13 May 2024 (the ?Tender Information Document?), plus accrued and unpaid interest (the ?Tender Offer?).

The Notes will be repurchased subject to the terms and conditions set out in the Tender Information Document. The Tender Offer expires at 12:00 CET on 16 May 2024, unless extended, re-opened, withdrawn or terminated at the sole and absolute discretion of the Issuer (?Expiration Date?). Settlement of the Tender Offer is expected to occur on 22 May 2024 (?Settlement Date?).

The Issuer has appointed Danske Bank A/S to act as dealer manager (the ?Dealer Manager?) in connection with the Tender Offer. Subject to the applicable minimum denomination in respect of the Notes, the Issuer offers to purchase any and all of the Notes at the purchase prices set out below. Description of the Notes /ISIN /Minimum Denomination /Purchase Price SEK 450,000,000 FRN due March 2025 /XS-2-325-591-365 /SEK 2,000,000 /100.550% NOK 750,000,000 FRN due March 2025 /XS-2-325-336-092 /NOK 2,000,000 /100.550% The Issuer will also pay an amount equal to any accrued and unpaid interest on the Notes on the Settlement Date (as defined below) in accordance with the terms and conditions of the Notes.