GLI Finance : Proposals Re. The SME Loan Fund plc - Update

8 March, 2017

GLI FINANCE LIMITED
(THE 'COMPANY' OR 'GLIF')

Proposals Re. The SME Loan Fund plc - Update

Further to the announcement by the Company on 21 February 2017, the directors of GLI Finance Limited are pleased to announce that:

· the secondary placing of its total holding in The SME Loan Fund plc ('SMEF') at 90p per share (the 'Secondary Placing'), valuing this holding at £22.7 million, has been successfully completed today;

· Amberton Asset Management Limited, which is 50% owned by GLIF and is the current investment manager of SMEF, will cease to be SMEF's investment manager and will be appointed by SMEF's new investment manager, SQN Capital Manager, LLC, as its sub-investment adviser in relation to SMEF's existing portfolio of loans, both with effect from 1 April 2017;

· In addition, the Company announces that it has agreed to acquire from SMEF for cash, certain performing loans which are inconsistent with SMEF's proposed future investment strategy, for their aggregate face value of £5.27 million (including accrued interest) as at 10 March 2017. GLIF is comfortable to hold these loans given this is in keeping with its strategy of providing financial support to the lending operations of its platforms. The weighted average yield of these loans for the last 12 months was 12.7%.

Following settlement of the Secondary Placing, which is expected to take place on 10 March 2017, GLIF will use the proceeds to repay its £14.86m syndicated loan, which matures on 15 March 2017, allowing the Company to simplify and strengthen its balance sheet. The remainder of the proceeds will be used to fund the acquisition of the loans referred to above and to expand the capital base of the Sancus BMS Group.

Ends

Enquiries

GLI Finance Limited

Andy Whelan

+44 (0)1534 708900

Liberum Capital (Nominated Adviser and Broker)

Steve Pearce

Chris Clarke

Jonathan Wilkes-Green

+44 (0) 207 100 2000

Instinctif Partners (PR Advisor)

Tim Linacre/Nick Woods

+44 (0)207 457 2020

About GLI Finance

GLI Finance (www.glifinance.com) is a specialist provider of finance to small and medium sized enterprises. Its ordinary shares are quoted on the AIM and its issued zero dividend preference shares are listed and traded on the main market of the London Stock Exchange (tickers GLIF and GLIS (Ord) and GLIZ (2019 ZDP)). Loans are provided to SMEs through a variety of finance platforms in which GLI has an equity stake.

The platforms in which GLI Finance is invested vary by geography, industry, size of lending and by type of lending. They include UK and US SME Lending, Offshore Lending, UK and European Invoice Discounting, Supply Chain Finance, Global Trade Finance and UK Property-Backed Lending.