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New Issue: Landsbankinn hf. Covered Bond Programme

The cover pool comprises residential mortgages with relatively low current cover pool loan-to-value (LTV) ratios compared to the archetype for Iceland. Covered bonds benefit from strong jurisdictional support in Iceland. We need further clarity about the legislative and practical implementation of Iceland's Bank Resolution Act before we are able to assess the implications of the framework for the bank's covered bonds. Based on our collateral analysis, the available credit enhancement is not sufficient to assign any notch of collateral-based uplift. Our collateral analysis considers that 8.6% of the mortgage assets' balance could be subject to full setoff risk by depositors. Cover pool assets are currently paying less than liabilities due to the current low interest rates environment. In our loss