Compulsory Redemption

10 July 2020

Alcentra European Floating Rate Income Fund Limited

Interim Compulsory Redemption

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 an interim compulsory redemption (the "Redemption") of its redeemable ordinary shares of no par value (the "Shares") in order to return approximately GBP45 million to shareholders.

The Redemption is being effected pro rata to holdings of Shares on the register at the close of business on 24 July 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 Redemption the Company has 91,677,667 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 - GG00B6116N85 (the "Old ISIN") - will expire. The new ISIN in respect of the remaining Shares which have not been redeemed - GG00BN4CFL84 (the "New ISIN") - will be enabled and available for transactions from 8.00 a.m. on 27 July 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 27 July 2020.

Expected timetable:

NAV Calculation Date 23 July 2020

Redemption Date 24 July 2020

Record Date and Expiry of Old ISIN 24 July 2020

Announcement of Results of the Redemption and New ISIN enabled 27 July 2020

Redemption monies paid by 3 August 2020

Further redemptions will be implemented when investment proceeds are received in sufficient amounts as the Board deems appropriate to return to Shareholders.

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.

Enquiries:

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

Jasper Cross +44 (0)1481 750 859