Sona Asset Management is set to launch a €400m (£342.6m) collateralised loan obligation (CLO).

Sona Aclai CLO I DAC is a multicurrency European CLO backed by a portfolio of broadly syndicated loans (BSLs) and private credit middle-market loans, according to a preliminary rating announcement by KBRA.

The CLO has exposure to 97 corporate obligors and at closing, the portfolio is expected to comprise 69.6 per cent senior secured BSLs and 30.4 per cent middle-market loans, KBRA stated.

The vehicle will have a five-year reinvestment period.

UK-based Sona Asset Management is a global alternative credit manager founded in 2016. The firm manages $19.7bn (£14.4bn) in assets across CLOs, private credit strategies and managed accounts.

The news comes as Fortress Investment Group priced its third European CLO last week, while Bridgepoint and CIC Private Debt have both reset vehicles focused on the continent this week.