*

Hitt og þetta 12. apríl 2006

Kaupthing Bank Issues Bond for USD 500 million

With this bond issue of USD 500 million, Kaupthing Bank has made total issues equivalent to EUR 1.8 billion so far this year, while the Bank (parent company) has long-term debt equivalent to EUR 1.3 billion maturing this year.

In light of market fluctuations in recent weeks, Kaupthing Bank does not expect US investors now carrying Extendible bonds to choose to extend their bonds on 20 April 2006. As a result, USD 605 million will come due for payment in spring 2007.

Gudni Adalsteinsson, Group Treasurer for Kaupthing Bank, comments: "This inaugural USD 500 million bond issue in the US demonstrates that Kaupthing Bank has good access to the US investor base, and the Bank will continue issuing bonds there in coming months. However, it is regrettable that the US Extendible-bond holders will choose not to extend their bonds, but in light of the recent market fluctuations this was not unexpected."