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CQS Rig Finance Fund Ltd : Statement re Monthly Shareholder Fact Sheet

    CQS Rig Finance Fund Ltd : Statement 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 January 2013 is now available on the Company's website
(www.cqsrigfinance.com) and includes further information on the top ten
investments and outstanding borrowings.

Global markets were buoyant in January. The last-minute agreement to tackle
the US fiscal cliff prompted a relief rally across world markets, however
postponed decisions on spending cuts and the debt ceiling may add to
volatility in the near-to-medium term. While economic data emanating from
Europe remains weak, the region's equity and credit markets were boosted by
hopes of a stabilising Eurozone economy and less onerous banking liquidity
requirements. In Asia, the re-acceleration of growth in China and the Bank of
Japan's extension of its asset purchase programme to achieve a new inflation
target of 2% served to renew investor optimism.

The MSCI World Index rose 5.4% over the month, while European equities, as
measured by the MSCI Europe, gained 5.1% (both net in local currencies). After
the strong rally in the last quarter of 2012, the Merrill Lynch High Yield
Index (excluding financials) was more muted in January, ending flat on the
month but Brent Crude oil continued its rise to close the month at $116 per
barrel. Against this backdrop, the Company's NAV per share rose 1.4% in
January from 35.53p to 36.04p

There were large gains on the Company's Rubicon Offshore Holding bonds as the
company announced a bigger-than-expected cash sweep of $11.3m, meaning that
8.5% of the outstanding bonds were redeemed at par. The remaining bonds were
marked up 3 points to a price of 94% of par. Smaller gains were recorded
across several other strategies. These were partially offset by losses on
TrollDrilling & Services Ltd ("Troll") after the company issued an update on 2
January confirming, amongst other things, that the management of Troll had
resigned. After the news, the Company sold half of its position above par
value. The bonds have 1st Lien security over the Troll Solution offshore
services vessel. The remaining exposure to Troll represents approximately 1%
of NAV and bonds are indicated at approximately 102% of par.

On 23 January Transocean Norway Drilling AS announced that it had called its
11% and floating rate senior unsecured callable bonds. The redemption price is
equal to 104.5% of the principal amount plus accrued and unpaid interest.The
Company held significant positions in both bonds and is due to receive cash on
6 March 2013.

On 22 January Vantage Drilling Company ("Vantage") announced that it has
received a conditional letter of award for its new-build drillship, the
Tungsten Explorer, to work in West Africa. The award is for a period of up to
four years commencing in mid-2014. This is positive news and the Company owns
both straight bonds issued by Vantage.

Despite the positive developments noted above, Arctic Securities, in its
'Drilling Market Update', noted some softness in the market. According to its
report, ultra-deepwater (UDW) contract durations had come down recently "hence
implying reduced contract backlogs for new-builds coming in the water. This is
negative for drillers with significant new-build capex requirements, in our
view, as it reduces debt funding potential for takeout payments." At the same
time, Arctic also noted that it had recently seen some (marginally) soft data
points in the UDW market.

All market data sourced from Bloomberg unless otherwise stated.

For further information, please contact:

Corporate Secretariat
Kleinwort Benson (Channel Islands) Fund Services Limited
01481 710 607

Alastair Moreton, Darren Vickers
NOMAD and Broker
Westhouse Securities Limited
020 7601 6118

RIG Shareholder Report - January 2013

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This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(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
HUG#1679402
 
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