Íslandsbanki hf. (the "Issuer"), Citibank, N.A., London Branch in its capacities as Fiscal Agent, Paying Agent and Transfer Agent and Citibank Europe Plc in its capacity as Registrar entered into a supplemental agency agreement dated 11 July 2023 (the "Supplemental Agency Agreement"), which is supplemental to an Amended and Restated Agency Agreement dated 6 September 2022 (the "Principal Agency Agreement"), to modify the terms and conditions of the Covered Bonds (the "Conditions") and the provisions of the Principal Agency Agreement in the manner described in this Announcement. The Principal Agency Agreement provides that the Fiscal Agent and the Issuer may agree, without the consent of the Covered Bondholders or Couponholders, to modifications to the Covered Bonds, the Conditions and the Principal Agency Agreement which, in the opinion of the Issuer, are (i) of a formal, minor or technical nature or (ii) made to comply with the provisions of (a) Directive (EU) 2019/2162 and Regulation (EU) 2019/2160 as such may be implemented into Icelandic law and/or (b) the Act on Covered Bonds (together, "Permitted Modifications").