Arion banki : CB 27 Tranche 6 - January 2023

APPLICABLE FINAL TERMS

9 January 2023

ARION BANK HF

Legal Entity Identifier (LEI): RIL4VBPDB0M7Z3KXSF19

Issue of ISK 3,420,000,000 5.50 per cent Fixed Rate Covered Bonds due October 2027

under the €2,000,000,000 Covered Bond Programme

PART A - CONTRACTUAL TERMS

Terms used herein shall be deemed to be defined as such for the purposes of the Conditions (the Conditions) set forth in the Base Prospectus dated 9 February 2012, 23 August 2013, 5 December 2014, 18 December 2015, 23 December 2016, 5 January 2018, 8 January 2019, 9 January 2020 and 16 July 2021 which are incorporated by reference in the Base Prospectus dated 12 October 2022. This document constitutes the Final Terms of the Covered Bonds described herein for the purposes of the Prospectus Regulation and must be read in conjunction with the Base Prospectus dated 12 October 2022 which constitute a base prospectus for the purposes of the Prospectus Regulation, including the Conditions incorporated by reference in the Base Prospectus, in order to obtain all the relevant information. Copies of such Base Prospectus and Final Terms are available for viewing at Borgartúni 19, 105 Reykjavík, Iceland and on the Luxembourg Stock Exchange's website at www.bourse.lu and copies may be obtained from the registered office of the Issuer and from the specified office of the Agent in London.

1. (a) Series Number:

1. Tranche Number:
2. Series which Covered Bonds will be consolidated and form a single Series with:
3. Date on which the Covered Bonds will be consolidated and form a single Series with the Series specified above:

12

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ISK 3,220,000,000 Fixed Rate Covered Bonds due October 2027 issued on 12 May 2022

12 January 2023

	(e)	Trade Date	5 January 2023
2.	Specified Currency or Currencies:	ISK

3. Aggregate Nominal Amount:

	−	Tranche:	3,420,000,000
	−	Series:	11,520,000,000
4.	Issue Price:	93.2852% of the Aggregate Nominal Amount
5.	(a)	Specified Denominations:	ISK 20,000,000
	(b)	Calculation Amount	ISK 20,000,000
			1

6.	(a)	Issue Date:	12 January 2023
	(b)	Interest Rate:	Fixed Rate
	(c)	Interest Commencement Date:	Issue Date
7.	Maturity Date:	Interest Payment Date falling in or nearest to 12
			October 2027
8.	Extended Final Maturity Date:	Interest Payment Date falling in or nearest to 12
			October 2028

9.	Interest Basis:	See paragraph 17 below
10.	Redemption/Payment Basis:	Subject to any purchase or cancellation or early
		redemption, if any, the Covered Bonds will be
		redeemed on the Maturity Date or Extended Maturity
		Date (as applicable) at 100 per cent. of their then
		outstanding nominal amount, plus accrued but unpaid
		interest.
11.	Change of Interest Basis:	Not applicable
12.	Put/Call Options:	Not Applicable

13. Date Board approval for issuance of 27 July 2022 Covered Bonds obtained:

14.	Method of distribution:	Non-syndicated
15.	Name and address of the Calculation Agent	Arion Bank hf.
		Borgartún 19, 105 Reykjavík, Iceland

PROVISIONS RELATING TO INFLATION LINKED COVERED BONDS

16.	Inflation Linked Covered Bond Provisions Not Applicable

PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE

17.

Fixed Rate Covered Bond Provisions

Applicable

(a)	Rate(s) of Interest:	5.50 per cent. per annum payable semi-annually in
		arrear on each Interest Payment Date
(b)	Interest Payment Date(s):	12 April and 12 October in each year up to and
		including the Final Maturity Date as applicable
		2

	(c)	Fixed Coupon Amount(s):	Not Applicable
		(Applicable to Covered Bonds in
		definitive form)
	(d)	Broken Amount(s):	Not Applicable
(Applicable to Covered Bonds in definitive form)
	(e)	Day Count Fraction:	30/360
	(f)	Determination Date(s):	Not Applicable
18.	Floating Rate Covered Bond Provisions	Not Applicable
19.	Zero Coupon Covered Bond Provisions	Not Applicable
20.	Inflation Linked Non-Amortising Covered	Not Applicable
	Bond Provisions

PROVISIONS RELATING TO REDEMPTION

1. Issuer Call
2. Investor Put
3. Final Redemption Amount of each Covered Bond
4. Early Redemption Amount of each Covered Bond payable on redemption for taxation reasons:

Not Applicable

Not Applicable

ISK 20,000,000 per Covered Bond of ISK 20,000,000 Specified Denomination

As set out in Condition 8.7(b)

25.	Relevant Percentage:	As at the Issue Date 1.4 per cent
GENERAL PROVISIONS APPLICABLE TO THE COVERED BONDS
26.	Form of Covered Bonds:	ISD Covered Bonds
		ISD Covered Bonds issued in uncertificated and
		dematerialised book entry form. See further item 7 of
		Part B below.
27.	New Global Covered Bond:	No
28.	Additional Financial Centre(s):	Not Applicable
29.	Talons for future Coupons or Receipts to	No
	be attached to definitive Covered Bonds in
	bearer form (and dates on which such
	Talons mature):

30. Details relating to Instalment Covered Not Applicable Bonds; amount of each instalment, date on

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	which each payment is to be made:
31.	Redenomination:	Redenomination not applicable

DISTRIBUTION

32. (a) If syndicated, names of Managers: Not Applicable

(b)

Date of Subscription Agreement:

Not Applicable

	(c)	Stabilising Manager(s) (if any):	Not Applicable
33.	If non-syndicated, name of Dealer:	Arion Bank hf.
34.	U.S. Selling Restrictions:	Reg. S Category 2; TEFRA C

35. Prohibition of Sales to EEA Retail Not Applicable Investors

36.

Prohibition of Sales to UK Retail Investors

Applicable.

37. Prohibition of Sales to Belgian Consumers: Applicable

38.

Relevant Benchmark:

Not Applicable

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			PART B - OTHER INFORMATION
1.	LISTING	AND	ADMISSION	TO	Application has been made by the Issuer (or on its
	TRADING				behalf) for the Covered Bonds to be admitted to
					trading on the NASDAQ Iceland hf. (the Icelandic
					Stock Exchange) and listing on the Regulated Market
					of the NASDAQ Iceland hf. with effect from or prior
					to the first Interest Payment Date.
	Estimate of	total	expenses related	to	ISK 115,000
	admission to trading:

2. RATINGS

Ratings:

The Covered Bonds to be issued have not been rated.

1. INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE
   Save for any fees payable to the Dealer, so far as the Issuer is aware, no person involved in the issue of the Covered Bonds has an interest material to the offer. The Dealer and its affiliates have engaged, and may in the future engage, in investment banking and/or commercial banking transactions with, and may perform other services for, the Issuer and its affiliates in the ordinary course of business.
2. REASONS FOR THE OFFER, ESTIMATED NET PROCEEDS AND TOTAL EXPENSES

(i)	Reasons for the offer:	As set out in "Use of Proceeds" in the Prospectus
(ii)	Estimated net proceeds:	ISK 3,190,353,840

5. YIELD (FIXED RATE COVERED BONDS ONLY)

Indication of yield:

5.5% per annum

1. PERFORMANCE OF FORMULA/CPI, EXPLANATION OF EFFECT ON VALUE OF INVESTMENT AND ASSOCIATED RISKS AND OTHER INFORMATION CONCERNING THE UNDERLYING (INFLATION LINKED COVERED BONDS AND INFLATION LINKED NON AMORTISING COVERED BONDS ONLY)
   Not Applicable
2. OPERATIONAL INFORMATION

(i)	ISIN Code:	IS0000034098
(ii)	Common Code:	Not Applicable

(iii)

CFI:

DBFSFR, as set out on the website of the

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