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CQS Rig Finance Fund Ltd (RIG)

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Tuesday 15 March, 2011

CQS Rig Finance Fund Ltd

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
February  2011 is now available on the Company's website (
and includes information on the top ten investments and outstanding borrowings.

Credit and equity markets moved higher during the first half of February hitting
new  highs as  US consumer  confidence and  news of Egyptian President Mubarak's
resignation  supported bullish sentiment.  This trend was  then swiftly reversed
due  to  a  combination  of  the  earthquake  in  New  Zealand, disappointing US
corporate earnings and unrest in the Middle East and North Africa which caused a
sharp  rally in the oil price. The price of Brent Crude spiked 12% over February
to  end the  month at  just below  $112 per  barrel. The Company's final NAV per
share  closed up 1% at 28.68 pence  against 28.38 pence at the  end of the prior

Gains  were seen on  the Rubicon Offshore  position after the  announcement of a
bond  restructuring which was  well received by  the market. In  exchange for an
extension  of the maturity of the bonds to 16 April 2014 and the rescheduling of
the  amortisation payment  due on  14 April 2011 to  the same  date, bondholders
received among other things:

 1. an increase of 1% in the coupon rate;
 2. an  additional quarterly payment of non-cash  PIK (payment in kind) interest
    of 4% per annum;
 3. semi-annual amortising principal payments;
 4. a 1% consent fee; and,
 5. additional security clauses.

The  bonds were marked up eight points immediately after the announcement of the
news.  The Company took the opportunity to add to its position in this name. The
gains  on this position were offset in part  by a loss on the Company's position
in Marine Subsea bonds. Other than these there were no significant price changes
in the portfolio. However, it is worth noting that the elevated oil price should
underpin asset values in the sector.

For further information, please contact:

Lynette Le Prevost
Corporate Secretariat
Kleinwort Benson (Channel Islands) Fund Services Limited
01481 727111

Hugh Field
Director, Corporate Finance
Arbuthnot Securities
020 7012 2000

All market data sourced from Bloomberg

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(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
Source: CQS Rig Finance Fund Ltd via Thomson Reuters ONE