Doc re. 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 December 2011 is now available on the Company's website (www.cqsrigfinance.com) and includes further information on the top ten investments and outstanding borrowings.
December was a quieter month in the markets as was to be expected in the run up to the Christmas break. Risky assets started the month positively after monetary policy loosening in China, then retreated following the final European Union summit of the year in the middle of the month. Positive data out of the US and Europe then sent stocks higher to leave the S&P 500 Index only slightly lower on the month. The price of Brent Crude maintained elevated levels, ending the year at $106.87 per barrel and the Merrill Lynch High Yield Index (ex financial) closed up 2.3%, partially reversing the 4.5% drop in the prior month.
The Company's NAV per share rose 1% from 32.51p to 32.83p at the month end. There were small positive moves across a number of strategies.
There was another new deal in December. Deep Drilling Ltd, a subsidiary of Aban Offshore Ltd issued a four year $125m secured amortising bond. The coupon is 12% and the bonds were issued at a four point discount to price at 96 cents. The bonds are callable in 2013 at 112.5 percent of par. The security consists of 1st lien mortgage over the high specification jack-up rig Deep Driller 1, a Baker Marine Pacific Class 375 rig built in 2006 and currently on contract to Gujarat State Petroleum Corporation. The Company subscribed to, and was allocated, bonds in this new issue.
Over the year to December 2011, the Company's NAV has increased from 28.25p to 32.83p and 1.55p has been distributed as income, equating to a total return of approximately 22%. The Merrill Lynch High Yield Index (ex financial) decreased by 1.2% over the same period. The outlook for 2012, in our view, appears robust. Following a survey of 350 companies, Barclays Capital forecasts that global Exploration and Production (E&P) spending will increase by 10% in 2012 (source: Reuters). Barclays Capital also notes in its 2011 Global Energy Outlook that "global oil demand growth is on a solid upward trajectory, as structural changes in non-OECD countries underpin most of that rise. The ineffectiveness of the supply side to catch up with it has created an extended period of supply capacity tightness, which will be apparent in 2012."
For further information, please contact:
Kleinwort Benson (Channel Islands) Fund Services Limited
Richard Johnson / James Steel
020 7012 2000
Alastair Moreton / Hannah Young
020 7601 6118
All market data sourced from Bloomberg unless otherwise stated.
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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