Bakkavör Group issues additional ISK 2 billion bond

Bakkavör Group hf. has issued an additional ISK 2 billion nominal value in bond category BAKK 03 1, in addition to the ISK 2.5 billion which was announced to the Iceland Stock Exchange on 18 June. The sale of the bonds has been completed and the bonds were sold in a private placement to institutional investors.

Bonds totalling ISK 4.5 billion nominal value have now been sold and their sales value is approximately ISK 5 billion. Bond category BAKK 03 1 is now ISK 9.5 billion nominal value and the company has generated approximately ISK 10 billion sales value by selling bonds in this category. The bonds are indexed bullet bonds maturing on 15 May 2009 and are listed on the Iceland Stock Exchange.

The purpose of this increase is as before to raise capital for the further development of activities on Bakkavör Group’s core markets and thereby encourage the profitable growth of the company.

Kaupthing Bank arranged the offering and underwrote the issue.

For further information please contact:

Lýdur Gudmundsson, CEO of Bakkavör Group

Tel: 00 44 7900 901 385