Føroya Banki issues a bond with individual government backed guarantee

Announcement no. 32/2009



Føroya Banki has concluded an agreement to issue a DKK 500 millions bond with

maturity on 30. November 2012. The bond will be listed on Nasdaq OMX

Copenhagen. The bond is sold to institutional investors in advance.



The bond is issued as unsubordinated debt with a floating rate set at 6 months

Cibor + 0.12 pct. Interest is fixed two banking days prior to the start of the

interest period. Interest for the first period has been fixed on the 28.

December 2009 at 1.774 pct. p.a.



The bond is guaranteed by Finansiel Stabilitet A/S. It is part of the

agreement announced on 16 December 2009, which gave Føroya Banki the option

to request a three-year government-backed guarantee for unsubordinated debt up

to a maximum of DKK 4.0 billion.





Further information:

Janus Petersen, CEO, phone (+298) 330 340

Johnny í Grótinum, IR, phone (+298) 230 380