AXI.L Regulatory News (AXI)

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THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. WITH THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

FOR IMMEDIATE RELEASE

18 August 2022

Axiom European Financial Debt Fund Limited

Company update

The Board of Axiom European Financial Debt Fund Limited (the "Company") notes that the regulatory transition that the Company's investment objective has sought to exploit since IPO is now drawing to a close. The Board also notes the persistent discount on, and limited liquidity in, the Company's shares despite the NAV performance track record of the Company which, in the 3- and 5-year periods to 15 August 2022, was by a substantial margin the best in the AIC Debt - Loans & Bonds sector at 6.85% p.a. and 5.23% p.a. respectively. Consequently, and in the light of feedback from a significant proportion of the Company's shareholders (the "Shareholders"), the Board has determined that it would not be in Shareholders' best interests to continue the Company in its present form and intends to put forward alternative proposals to Shareholders.

The Board has been encouraged by the positive feedback from Shareholders in respect of the Company's strategy and the potential for it to be evolved to provide attractive returns into the future. The Board also notes that the investment manager, Axiom Alternative Investments SARL ("Axiom") already manages a range of other funds which follow similar strategies with success and which have seen substantial inflows of investor capital over the past two or three years. Accordingly, due to the challenges noted above, the Board intends to offer Shareholders the option of receiving cash at NAV (less costs, including any portfolio realisation expenses) for some or all of their shareholding and/or to continue their investment in an open-ended vehicle managed by Axiom (the "Proposals"). That vehicle will have a similar investment strategy to that which the Company would have proposed if it were to continue to operate as a closed-ended listed investment company. In order to effect the Proposals it is expected that the existing Company will be liquidated.

The Board, together with Axiom and the Company's broker, Winterflood Securities Limited, is working on formal proposals to be put to Shareholders and will make a further announcement with details in due course. The Board's aim is for the proposals to be put to Shareholders early in 2023 and, assuming Shareholder approval is received, for the transaction to be completed as soon as reasonably practicable thereafter.

LEI: 54930084Q2LJS2LB1V76

The person responsible for making this announcement is Kevin Robins tel 01481 810 100.

For further information please contact:

Further details of the Company can be found on its website https://axiom-ai.com/web/en/axiom-european-financial-debt-fund-limited-2

Important Notice

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction, whether pursuant to this announcement or otherwise.

The release, distribution or publication of this announcement in jurisdictions outside the United Kingdom may be restricted by laws of the relevant jurisdictions and therefore persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.