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
May  2012 is now available on  the Company's website (www.cqsrigfinance.com) and
includes  further  information  on  the  top  ten  investments  and  outstanding
borrowings.

There were two important elections for the Eurozone during the month. In France,
socialist Francois Hollande was elected President of the Republic and in Greece,
no  party was able  to form a  government. As a  result, the selloff in European
markets  seen in April  continued throughout May  leading the EuroStoxx index to
fall over 8%. The price of Brent Crude also slumped significantly by 15% to $101
per  barrel and the Merrill Lynch High Yield Index (ex financial) fell 1.8%. The
Company's  NAV per share proved resilient against this backdrop falling 0.35% to
33.73p. Most positions were marked down slightly, reflecting the weakness of the
wider markets but losses were partially offset by carry.

Songa  Offshore SE ("Songa") announced a new NOK750m 3 year bond issue. The bond
pays  a  coupon  of  Nibor+7.75%  and  is  unsecured. The Company elected not to
participate  in  this  investment  opportunity  given  the  weak markets and the
Company's existing exposure to the other bonds issued by Songa which pay coupons
of  Nibor  +12% and  Nibor  +10%. We  will  continue  to monitor the bond in the
secondary market for an appropriate entry point.

There  was limited portfolio news  during the month. Ocean  Rig UDW Inc. ("Ocean
Rig")  announced  that  it  has  signed  definitive  documentation for its ultra
deepwater  drillship "Ocean Rig Olympia", with Total E&P Angola. The contract is
for  a three-year  period for  drilling offshore  West Africa, with an estimated
backlog  of approximately $652m. The contract  is expected to commence in direct
continuation  of the Ocean  Rig Olympia's existing  contract in West Africa. The
customer has the option to extend the contract for two periods of one year each,
with  the first  option exercisable  within one  year from the commencement date
under  the drilling contract, and the  second option exercisable within one year
after the date of exercise of the first option. This increase in firm backlog of
this magnitude is positive for the 9.5% 2016 bonds issued by Ocean Rig which the
Company owns.

Given  the volatility of the markets and  the significant drop in the oil price,
the  Company has retained  cash resources at  its disposal to  take advantage of
opportunities as and when they arise.


For further information, please contact:

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

Alastair Moreton/Hannah Young
NOMAD and Broker
Westhouse Securities Limited
020 7601 6118

All market data sourced from Bloomberg unless otherwise stated.



RIG Shareholder Report - May 2012: 
http://hugin.info/140293/R/1621577/518198.pdf



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Source: CQS Rig Finance Fund Ltd via Thomson Reuters ONE
[HUG#1621577] 
  

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