Chenavari Toro Regulatory News (TORO)

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

28 September 2015

Toro Limited

Primary Investment - Private Asset Backed Finance Strategy

Toro Limited announces a further primary investment under the Private Asset Backed Finance Strategy.

Primary Investment

Toro Limited (Toro or the Company) has invested approximately €31.25m in instruments backed by the performance of a granular NPL portfolio of SME loans and secured residential loans.

This co-investment will be junior to any senior financing of the portfolio, and backed proportionately by loan exposures to 1654 SMEs and to 2283 secured residential loans originated by Bancaja, Bankia and Caja Madrid. The expected weighted average life (WAL) of the portfolio is 2.8 years. The portfolio is expected to be serviced by Copernicus, an independent servicing entity with a significant expertise with these asset classes.

Upon acquisition, the transaction represented approximately 8.5% of the Company's net asset value. Following the above transaction and other cash flows the Company is now approximately 83% invested.

The expected return of the investment is in line with Toro's target gross return for Private Asset-Backed Finance of approximately 15%. Chenavari Investment Managers, the Portfolio Manager of the Company, continues to work on a pipeline of originated transactions with attractive risk-adjusted returns.

About Toro

Toro, incorporated in Guernsey, is a closed-ended investment company admitted to trading on the specialist fund market of the London Stock Exchange and to the Daily Official List of the Channel Islands Securities Exchange on 8 May 2015. The investment objective of Toro is to deliver an absolute return from investing and trading in Asset Backed Securities and other structured credit investments in liquid markets, and investing directly or indirectly in asset backed transactions including, without limitation, through the origination of credit portfolios. Toro continues and extends the credit strategy successfully managed by the Chenavari Financial Group since mid-2009 via its flagship fund Toro Capital IA and IB, whose shareholders voted to transition their holdings to Toro for its launch.

Forward-looking statements

This announcement contains forward-looking statements including, without limitation, statements containing the words "believes", "estimates", "anticipates", "expects", "intends", "may", "will", "target" or "should" or, in each case, their negative or other variation or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, financial condition, performance or achievement of Toro or any Originator, or industry results, to be materially different from future results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Past performance is not a reliable indicator of future performance and Toro may not achieve the same level of returns as those achieved by previous investments. Target returns are estimated only and net of fees, expenses and income reinvested. They are based on long-term performance projections of the investment strategy and market conditions at the time of modelling and therefore, subject to change. There is no guarantee that any target returns can be achieved. Investors should not place reliance on such target returns in deciding whether to invest in Toro.

About Chenavari

Chenavari is part of the Chenavari Financial Group, a specialist alternative asset management group focusing on European & Asian markets. With over 100 professionals and USD5.5 billion of assets under management, funds managed by Chenavari target investment strategies across Credit (Corporate and High yield, Financials, Credit Derivatives), Structured Finance (ABS, CMBS, Regulatory Capital) and Illiquid Opportunities (Private Debt, Real Estate, Consumer Finance, Private Equity). Chenavari Financial Group contains entities authorized and regulated by several regulators globally, including the UK FCA, the Luxembourg CSSF, the US SEC, the US CFTC and the Hong Kong SFC. (www.chenavari.com)

Enquiries:

Kirstie McLaren

Chenavari Investment Managers

Email: Investor-relations@chenavari.com

Telephone: +44 20 7259 3600

Robert Peel

Dexion Capital plc

Telephone: +44 20 7832 0900

 IMPORTANT INFORMATION

This document has been issued by Toro, and should not be taken as an inducement to engage in any investment activity and is for the purpose of providing information about the Company. This document does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any share in the Company or securities in any other entity, in any jurisdiction, including the United States, Canada, Japan, South Africa nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction.

This document, and the information contained therein, is not for viewing, release, distribution or publication in or into the United States, Canada, Japan, South Africa or any other jurisdiction where applicable laws prohibit its release, distribution or publication, and will not be made available to any national, resident or citizen of the United States, Canada, Japan or South Africa. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes must inform themselves about, and observe, any such restrictions. Any failure to comply with the restrictions may constitute a violation of the federal securities law of the United States and the laws of other jurisdictions.

The shares issued and to be issued by the Company (the "Shares") have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States. The Shares may not be offered, sold, resold, pledged, delivered, distributed or otherwise transferred, directly or indirectly, into or within the United States, or to, or for the account or benefit of, US persons (as defined in Regulation S under the Securities Act). No public offering of the Shares is being made in the United States.

The Company has not been and will not be registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act") and, as such, holders of the Shares will not be entitled to the benefits of the Investment Company Act. No offer, sale, resale, pledge, delivery, distribution or transfer of the Shares may be made except under circumstances that will not result in the Company being required to register as an investment company under the Investment Company Act. Neither the U.S. Securities and Exchange Commission (the "SEC") nor any state securities commission has approved or disapproved of the Shares or passed upon or endorsed the merits of the offering of the Shares or the adequacy or accuracy of the Company's prospectus. Any representation to the contrary is a criminal offence in the United States. In addition, the Shares are subject to restrictions on transferability and resale in certain jurisdictions and may not be transferred or resold except as permitted under applicable securities laws and regulations. Investors may be required to bear the financial risks of their investment in the Shares for an indefinite period of time. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdictions.

No liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this document is accepted and no representation, warranty or undertaking, express or implied, is or will be made by the Company, or any of their respective directors, officers, employees, advisers, representatives or other agents ("Agents") for any information or any of the opinions contained herein or for any errors, omissions or misstatements. None of the Agents makes or has been authorised to make any representation or warranties (express or implied) in relation to the Company or as to the truth, accuracy or completeness of this document, or any other written or oral statement provided. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any, targets, estimates or forecasts contained in this document and nothing in this document is or should be relied on as a promise or representation as to the future.

Unless otherwise indicated, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date.

All investments are subject to risk, including the loss of the principal amount invested. Past performance is no guarantee of future returns. All investments to be held by the Company involve a substantial degree of risk, including the risk of total loss. The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. You should always seek expert legal, financial, tax and other professional advice before making any investment decision.