Issue of Debt

Aldermore Group PLC

21 October 2016

NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES OR ITS TERRITORIES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS OR OTHERWISE THAN TO PERSONS TO WHOM IT CAN LAWFULLY BE DISTRIBUTED

OFFERING OF £60 MILLION CALLABLE DATED SUBORDINATED NOTES

Aldermore Group PLC ("Aldermore") announces the final terms of its offering of £60 million of Callable Dated Subordinated Notes (the "Notes").

The Notes will have a coupon of 8.50 per cent. per annum, payable semi-annually in arrear (subject to reset in accordance with their terms). The Notes will be issued at 100 per cent. of their principal amount and, unless previously redeemed or purchased and cancelled will be redeemed at 100 per cent. of their principal amount, together with any accrued and unpaid interest, on their maturity date of 28 October 2026.

Settlement is expected to take place on or about 28 October 2016.

The Royal Bank of Scotland plc is acting as the Structuring Advisor, Sole Bookrunner and Sole Manager for the offering.

Aldermore intends to use the proceeds of the Notes to support its planned business growth, strengthen its capital position, and to further optimise the Group's capital structure and increase its capital planning flexibility.

Phillip Monks, Chief Executive of Aldermore said:

"I am delighted with the response to the Tier 2 bond issue, which demonstrates confidence in the Group, its balance sheet strength and prospects for future growth. The bond issue will bring further diversification to the Group's sources of funding and enhance the capital position."

For further information, please contact:

Investor Relations

Aldermore Group PLC

50 St Mary Axe

London

EC3A 8FR

Telephone: 0207 788 6699

IMPORTANT NOTICE

This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for or otherwise acquire any securities in the United States or in any other jurisdiction. This announcement is not for distribution, directly or indirectly in or into the United States (as defined in Regulation S under the US Securities Act of 1933, as amended (the "Securities Act")). The securities referred to herein have not been and will not be registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This communication is directed only at (i) persons who are outside the United Kingdom, or (ii) persons who are in the United Kingdom who are (a) persons who have professional experience in matters relating to investments falling within Article 19(5) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or (b) otherwise, persons to whom it may otherwise lawfully be directed (all such persons together being referred to as "relevant persons"). This communication is directed only at relevant persons and must not be read, acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.

END