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CQS Rig Finance Fund Ltd : Statement re June Monthly Factsheet



        CQS Rig Finance Fund Ltd : Statement re June Monthly Factsheet

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 June 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 continued to react to concerns of a sooner-than-anticipated
tapering of the US Federal Reserve's ('Fed') quantitative easing programme.
Equities, US Treasuries, and global credit markets were all weaker in June,
although statements from Fed officials in an attempt to calm markets helped to
reverse some of the sharper moves towards the end of the month. Increased
volatility was also exacerbated by continued weak macroeconomic data,
especially from Europe and China. The MSCI World Index fell 2.4% net in local
currencies. European equities, as measured by the MSCI Europe Index, saw a
decline of 5.0% while the MSCI Asia Index fell 2.5%. US 10-year Treasury
yields climbed to over 2.6%, from 2.1% at the beginning of June, though rates
partially retraced back to 2.5% by month-end. In Europe, iTraxx Crossover
(S19) widened from 422bps to 477bps and iTraxx Main (S19) widened from
103.25bps to 119.75bps. In the US, CDX Investment Grade (S20) widened from
77.75bps to 86.50bps and the CDX High Yield (S20) widened from 383bps to
428bps. On an intra-month basis, both iTraxx Crossover (S19) and CDX High
Yield indices (S20) widened by over 100bps. The BoAML euro Non-Financial Fixed
& Floating Rate High Yield Constrained Index posted a 2.1% loss. As in May,
the price of Brent Crude oil was volatile but started and ended the month not
far from the $100 per barrel mark. Against this backdrop, the Company's NAV
per share posted a loss of 1.2% on the month to close at 36.31p.

Losses were recorded across the majority of strategies alongside the weakening
markets and negative newsflow from Subsea 7 SA. On 26 June, the company
announced an increase in the estimated full-life project loss on the
Guará-Lula NE project which is offshore Brazil. It stated, "as a result, the
company no longer expects full year adjusted EBITDA to show progress compared
to 2012...Based on the experience to date, the estimated full-life project
costs are expected to increase by between $250 million and $300 million as
compared to our previous expectations"^1. This profit warning led to a steep
fall in the Subsea 7 share price and negatively impacted the price of the
Subsea bonds in the portfolio.

Despite the weak markets, the liquidity in the investment space was reasonably
robust. The market has historically become more illiquid during the summer
months, especially the Norwegian high yield market as most participants take
holiday in July. As well as this potential liquidity risk, two other factors
are notable: weak data from China has reignited the market debate over a
possible 'hard landing' and the ensuing risk to global growth; and it is
noteworthy that the oil price has remained resilient in the face of weakness
in the wider commodity markets. Bearing this in mind, the Company took
advantage of the liquidity to exit some smaller positions and trim other
positions across the portfolio, thus increasing cash balances.

All market data sourced from Bloomberg and MSCI unless otherwise stated. MSCI
index returns are in local currencies with net dividends reinvested.

^1Source: Bloomberg, as at 26 June 2013

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 Fact Sheet

------------------------------------------------------------------------------

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#1717117
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