Quarterly Dividend and Special Distribution

Chenavari Toro Income Fund Limited (the Company)

27 July 2020

Quarterly Dividend and Special Distribution for the Quarter ended 30 June 2020

In line with the enhanced dividend policy announced by the Company on 8 June 2020 (the "Enhanced Dividend Policy"), the Company is pleased to announce payment of its quarterly dividend of 2.5% (Euro 0.0203 per ordinary share) (the "Quarterly Dividend") and a special quarterly distribution of EUR 0.1217 per ordinary share (the "First Special Distribution") for the period from 1 April 2020 to 30 June 2020, meaning a combined Quarterly Dividend and First Special Distribution of Euro 0.1420 per ordinary share.

Payment will be made on 16 September 2020 to holders of ordinary shares recorded on the register as at close of business on 21 August 2020, with an ex-dividend date of 20 August 2020. The Quarterly Dividend yield remains targeted at 2.5% quarterly (equating to a targeted annualised dividend yield of 10 per cent by reference to NAV).

Shareholders wishing to take the Quarterly Dividend and First Special Distribution in scrip, or to make a dividend currency election, should note that the last date to make an election to join the scrip dividend scheme or make a currency election is 17:00 on 3 September 2020. The scrip reference price will be calculated and announced on or around 27 August 2020.

The First Special Distribution is part of the new Enhanced Dividend Policy of the Company, which has been put in place to maintain a maximum cash balance in the Company's portfolio of 10 per cent of NAV at the end of each calendar quarter up to 31 December 2020. All excess cash in excess of this balance within the portfolio will be distributed as a special distribution on a quarterly basis. The special distributions will be in addition to any quarterly dividend paid pursuant to the Company's normal dividend policy.

With effect from 1 January 2021, the maximum cash balance cap will be reduced to a level of not more than 5 per cent. of NAV, unless the investment manager, at its discretion, decides to maintain such cap at a maximum of 10 per cent., should market opportunities in liquid and tradable European ABS / CLO arise.

The payment of any quarterly special distribution is subject to the Company having excess cash available. Shareholders should have no expectation that any such special dividends will be paid in any future quarter.

Further information in relation to the Company is available at:

http://www.chenavaritoroincomefund.com

Enquiries:

Sophie Porter / Guy Goyard

Chenavari Investment Managers

Email: [email protected]

Telephone: +44 20 7259 3600