Completion of Partial Compulsory Redemption

14 September 2020

Alcentra European Floating Rate Income Fund Limited

Completion of partial compulsory redemption and total voting rights

Pursuant to Alcentra European Floating Rate Income Fund Limited's (the "Company") compulsory partial redemption of its redeemable ordinary shares of no par value (the "Shares") announced on 28 August 2020, 36,084,453 Shares, approximately 87.6033% of Shares in issue, were redeemed and cancelled on 11 September 2020 and, accordingly, 5,106,272 Shares remain in issue. The remaining Shares which have not been redeemed will trade under a new ISIN - GG00BL649943 (the "New ISIN"), which have been enabled and are available for transactions from today, 14 September 2020. CREST will automatically transfer any open transactions to the New ISIN.

The Redemption Price per Share redeemed is 88.67pence. It is expected that payments of redemption monies will be effected either through CREST (in the case of Shares held in uncertificated form) or by cheque (in the case of Shares held in certificated form) by 21 September 2020.

Each Share carries the right to 1.2 votes. Therefore the total number of voting rights in the Company is 6,127,526. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest, in the Company under the FCA's Disclosure Guidance and Transparency Rules.

Late on Friday afternoon Euroclear issued a communication informing all market participants that due to issues they were having with settlement, Euroclear was invoking a Non Standard CREST Closure (NSCC). As a consequence the results of the redemption were not available until the afternoon of 14 September 2020. The record date and payment date remain unchanged.

Enquiries:

Jasper Cross

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

Tel: 01481 750850