Update on December 2019 Tender

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

18 November 2019

Update on December 2019 Tender

The Board of Directors of Alcentra European Floating Rate Income Fund Limited (the "Company") announces that the Company has received Tender Requests for 16,510,128 Shares in respect of the December 2019 Tender. 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.

Ian Fitzgerald, chairman of the Company, said:

"Following the comprehensive review of the outlook for the Company, the Board concluded that it would best serve Shareholders by strengthening the approach to discount control through the introduction of the Quarterly Tender Offers. Following the announcement on 11 July, the discount to Net Asset Value at which the Company's Shares trade has narrowed, latterly in the absence of Share repurchases. Having received Tender Requests fewer than the maximum available, it is pleasing to see Shareholders remain supportive of the approach and strategy followed by the Company's investment manager, Alcentra."

As set out in the circular to Shareholders published by the Company on 28 August 2019 (the "Circular"), the Tender Price shall be calculated as the Net Asset Value of the Company as at the Calculation Date, being 31 December 2019, minus 1.5 per cent. Following the Calculation Date, Shares successfully tendered shall be repurchased by the Company on the Repurchase Date, being 10 January 2020. A further announcement shall be made on 13 January 2020 setting out the result of the December 2019 Tender.

Each of the dates referred to above may be extended or brought forward at the Company's discretion. If any of the above dates change, the revised date(s) will be notified to Shareholders by an announcement through an RIS provider and any such announcement will be placed on the Company's website. All references to times are to London times.

Capitalised terms used in this announcement and not otherwise defined have the meanings given to them in the Circular.

Enquiries:

Jasper Cross

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

Tel: 01481750850

LEI: 549300BZ4K4RM8RKES49

This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.