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CQS Rig Finance Fund Ltd (RIG)

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Wednesday 19 May, 2010

CQS Rig Finance Fund Ltd

Shareholder Fact Sheet - April 2010

          CQS Rig Finance Fund Limited: Monthly Shareholder Fact Sheet

                          CQS RIG FINANCE FUND LIMITED

                         Monthly Shareholder Fact Sheet

CQS  Rig  Finance  Fund   Limited  (the  "Company")  a   closed-ended investment
company  incorporated in   Guernsey, is  pleased to   announce that its Monthly
Fact  Sheet  for   April  2010 is   now  available on  the Company's website and
includes information on the top ten investments and outstanding borrowings: <>

Equity  and credit  markets were  relatively stable  during April  following the
strong rally from the previous month. Once again, WTI crude oil markets followed
this  trend, starting  and ending  the month  around USD  86 per barrel.  In the
offshore  oil & gas drilling sector, the  major news during April related to the
oil  leak in  the Gulf  of Mexico  and we  are monitoring  the situation for any
potential impact on the portfolio.

In  the deepwater  drilling sector,  Seadrill announced  that it  had received a
letter  of intent from Statoil for a  harsh environment jack-up drilling rig for
the  Norwegian Continental Shelf.   The letter of  intent represents a five-year
contract  with  an  estimated  contract  value  of  approximately USD650 million
(including  a mobilization fee  of USD24 million)  and start-up is scheduled for
the  third quarter 2011. Statoil has the option to extend the contract by one to
four  years on  the same  terms and  conditions.  The  rig is an advanced, ultra
large,  harsh environment,  high specification  drilling unit specifically built
for  Norwegian requirements  and is  similar to  the rigs  being built  by Skeie
Drilling   &  Production  ASA  in  which  the  company  has  invested.  (source:

There  were several pieces  of news related  to the Company's investments during
the month.

Skeie  Drilling  &  Production  ASA announced  that  its  USD30m  Equity Private
Placement  was heavily oversubscribed.  A first lien bond issue was subsequently
launched  which raised a total gross amount  of USD225 million. The net proceeds
from  the  offering  shall,  inter  alia,  be  employed to finance the last yard
instalment   for  the  company's  first  N-class  jackup  rig,  currently  under
construction at KFELS in Singapore. The bonds will carry a coupon rate of 12.0%
payable annually, and mature in 2017.

ODS  Petrodata reported  that acceptance  testing would  commence shortly on the
Sevan Driller rig ahead of its maiden contract offshore Brazil.  The rig arrived
in  Brazil in late  March, following its  mobilisation from China,  and has been
going  through customs clearance since then. Following acceptance testing, Sevan
Driller  will undertake a six year  firm charter with Petrobras offshore Brazil.
Operations are expected to commence in May.

Northern  Offshore Ltd. announced that it had agreed a USD120m secured revolving
credit  facility maturing  in September  2011 with Royal  Bank of Scotland Group
Plc,  Nordea  Bank  Norge  ASA  and  NIBC Bank N.V, subject to customary closing
conditions.   This was  positive news  as the  Company holds  a position  in the
Northern Offshore bonds which are due to mature in June 2010.

Norsk  Tillitsman, the Norwegian trustee, announced  that the bondholders in the
Petrorig  III (NOK1.6bn) bond  were to be  paid a partial  repayment. The amount
equated  to approximately a 95% recovery for the bondholders. The company held a
position in this bond and proceeds were received in May.

Gains  were recorded on the Skeie  Drilling & Production ASA positions following
the  above news, as well  as on the position  in Remedial Cyprus, although there
was no specific news.

All market data is sourced from Bloomberg.

For further information, please contact:

Lynette Le Prevost
Company Secretary
Kleinwort Benson (Channel Islands) Fund Services Limited
Tel : 01481 727111

Alastair Moreton
Director, Corporate Finance
Arbuthnot Securities
Tel: 020 7012 2000