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 June 2009 is now available on the
Company's website:
www.cqsrigfinance.com
The investment manager's commentary in the Fact Sheet is as follows:
During June, WTI crude oil for August delivery rose from $67 to $70,
having hit an intra month high of $73.5. In the high yield credit
markets, bond positions gave back some of the sharp gains of the
previous months as markets entered a period of consolidation. In the
wider markets, risk assets across the board paused from the sharp
rally of the previous couple of months and ended the month lower.
Further evidence was seen of previously identified trends in the
offshore rig market. Jack-up rig rates continued to soften but the
ultra deep water ("UDW") segment, although not immune to the
downturn, is showing more resilience due perceived future potential
shortages. According to ODS Petrodata, there are no available UDW
(+7,500ft) rigs available in 2009 (however 5 units offer sub-let
periods).
In June, the Company's portfolio recorded gains across several
positions, primarily those directly related to drilling rigs. This
was especially evident in one company as the drilling rig under
construction nears completion.
Financing markets are still exceptionally difficult as banks,
particularly those lending to the offshore rig industry, attempt to
repair their own balance sheets. However, during the month one of
the Company's portfolio holdings was able to raise equity via a share
issue, which led to an increase in the valuation of the Company's
position in it.
All market data is sourced from Bloomberg
For further information, please contact:
Lynette
LeProvost
Alastair Moreton
Secretary
Director, Corporate Finance
Kleinwort Benson (Channel Islands)
Arbuthnot Securities
Fund Services Limited
01481
727111
020 7012 2000
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