Result of December 2019 Tender Process

Alcentra European Floating Rating Income Fund Limited (the "Company")

13 January 2020

Result of December 2019 Tender Process

The Board of Directors of Alcentra European Floating Rate Income Fund Limited (the "Company") announces that the Company has accepted in full the Tender Requests in respect of the December 2019 Tender.

Accordingly, the Company repurchased 16,510,128 Shares on 10 January 2020 at GBP 1.0182 per Share, this being the Tender Price.

The Company will pay GBP 1.0177 per Share that it repurchases, this being the Tender Price less the Expenses of the Quarterly Tender Offer.

Settlement of the repurchase will be made on 12 February 2020, the Share Sale Settlement Date.

The Company will hold the repurchased shares in treasury, in line with the policy set out in the circular to Shareholders published by the Company on 28 August 2019 (the "Circular"). Following this transaction, as at 12 February 2020 the Company will have 103,361,401 Shares in issue and 124,033,681 voting rights. There will be 16,510,128 Shares held in the Company's treasury account.

As reported in the update on the December 2019 Tender announced on 18 November 2019, these Tender Requests represent 13.8 per cent. of the Company's Shares in issue, less than the maximum 20 per cent. of the Company's Shares in issue available to be tendered in the quarter.

The capitalised terms used in this announcement but not defined herein are as defined in the Circular.

Enquiries:

Jasper Cross

BNP Paribas Securities Services S.C.A., Guernsey Branch

Tel: 01481750850

LEI: 549300BZ4K4RM8RKES49