Second Compulsory Redemption

28 August 2020

Alcentra European Floating Rate Income Fund Limited

Second Compulsory Redemption

The information contained within this announcement constitutes inside information.

The Board of Directors of Alcentra European Floating Rate Income Fund Limited (the "Company") is pleased to announce that following the successful sale of the Company's investments, the Company will implement a second compulsory redemption (the "Second Redemption") of its redeemable ordinary shares of no par value (the "Shares") in order to return approximately GBP32 million to shareholders.

The Second Redemption is being effected pro rata to holders of Shares on the register at the close of business on 11 September 2020 (the "Redemption Date") pursuant to a general authorisation to redeem Shares held by all Shareholders in accordance with Article 49 of the Company's Articles of Incorporation.

Prior to the Second Redemption the Company has 41,190,725 shares in issue. All of the Shares redeemed on the Redemption Date will be cancelled. No fractions of Shares will be redeemed and so the number of Shares to be redeemed for each Shareholder will be rounded down to the nearest whole number of Shares.

The Shares will be disabled in CREST after close of business on the Redemption Date and the existing ISIN number - GG00BN4CFL84 (the "Old ISIN") - will expire. The new ISIN in respect of the remaining Shares which have not been redeemed - GG00BL649943 (the "New ISIN") - will be enabled and available for transactions from 8.00 a.m. on 14 September 2020. Up to and including the Redemption Date, Shares will be traded under the Old ISIN and as such, a purchaser of such Shares would have a market claim for a proportion of the redemption proceeds. CREST will automatically transfer any open transactions as at the Redemption Date to the New ISIN.

The Redemption Price and the Relevant Percentage, being the percentage of shares redeemed by the Company on the Redemption Date, will be included in the announcement of the results of the Redemption on 14 September 2020.

Expected timetable:

NAV Calculation Date 10 September 2020

Redemption Date 11 September 2020

Record Date and Expiry of Old ISIN 11 September 2020

Announcement of Results of the Redemption and New ISIN enabled 14 September 2020

Redemption monies paid by 21 September 2020

This announcement is released by Alcentra European Floating Rate Income Fund Limited and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

The person responsible for arranging for the release of this announcement on behalf of the Company is Sharon Williams of BNP Paribas Securities Services S.C.A., Guernsey Branch, Company Secretary.

Enquiries:

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

Jasper Cross +44 (0)1481 750 859