The agreement, which was structured and financed by Standard Chartered, will give Al Khaleej Sugar access to additional funds by using its physical commodity stocks (sugar) as security, in line with the DCR system. DCR acts as an electronic commodity warehouse receipt which can be used to finance goods which are in store in Dubai. SGS Geneva acted as the Collateral Managers in the transaction.
"DCR is a unique concept in the commodity trading business enabling clients to enhance their trading capabilities beyond the balance sheet by gaining access to additional bank finance," said Jonathan Morris, Head of Client Relationships - UAE & Oman, Standard Chartered Bank.
DCR is expected to have a major impact on facilitating the further growth of the commodities sector in Dubai, which was identified as a key sector by the Dubai Government when the DMCC was established in 2002.
DMCC's Executive Director, Commodities, Dr. David Rutledge said: "We are delighted to see that the DCR has already been utilized - a clear sign of confidence and trust in the system and in DMCC itself. We are also pleased to see that Al Khaleej Sugar, SGS and Standard Chartered Bank - three important and valuable founder members of DCR - were the three companies involved in the first transaction".
The DMCC provides an industry-specific market infrastructure and a full range of facilities for the gold and precious metals, diamonds and coloured stones and commodity industries.
Jamal Al Ghurair, Managing Director of Al Khaleej Sugar, amongst the largest sugar refineries in the world, said of the deal: "The introduction of the DCR system is a welcome move from the DMCC and will help make commodity transactions more efficient in Dubai and significantly increase confidence in this type of deal."
Standard Chartered, already an industry leader in innovative solutions for its clients, is the first bank to make use of the new DCR financing tool for its commodities trading business, and will be using the system to increase its regional activity in this growing area of finance.
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Standard Chartered agrees first ever Dubai Commodity Receipts deal with Al Khaleej Sugar
- United Arab Emirates: Wednesday, September 29 - 2004 at 13:11
- PRESS RELEASE
Standard Chartered Bank, one of the leading international banks in the UAE, has announced a groundbreaking deal to provide financing to Al Khaleej Sugar under the new Dubai Commodity Receipts (DCR) system, which was recently launched by the Dubai Metals & Commodities Centre (DMCC).
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Standard Chartered Bank UAELeading the way in Asia, Africa and the Middle East
In Global terms, the United Arab Emirates represents the fourth largest market for the Standard Chartered Group. Operations began in the UAE in 1958 with the opening of a branch in Sharjah and the bank now has a presence across the UAE, with branches in Dubai, Abu Dhabi, Sharjah and Al Ain. Standard Chartered is one of the top international banks and the fifth largest bank in the country in terms of trading profits as well as the leading credit card issuer and also the number one Visa card issuer in the UAE.
The Standard Chartered Group employs 30,000 people in over 500 locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. It is one of the world's most international banks, with a management team comprising 70 nationalities. Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalisation.
It serves both Consumer and Wholesale Banking customers. Consumer Banking provides credit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale Banking provides corporate and institutional clients with services in trade finance, cash management, lending, security services, foreign exchange, debt capital markets and corporate finance.
The wealth of accolades that Standard Chartered UAE has received since its inception supports its commitment to becoming ''The Right Partner'' to customers, communities and investors. It has been awarded the Best Cash Management Bank, Middle East at the Euromoney Awards in both 2003 and 2004.
Standard Chartered Bank is committed to making a difference in the communities in which it operates. The bank strongly supports both international and local charity events and is trusted and caring in the communities in which it operates.
In the UAE, it has recently become the title sponsor of the Standard Chartered Dubai Marathon 2005 and the seasonal sponsor of the Arabian Gulf Rugby Football Union in addition to being a major supporter of the Dubai Community Arts Centre.
For further information, contact:
Niall McLoughlin
Head of Corporate Affairs, Standard Chartered Bank
Tel: +971 (0) 4 5070467
Fax: +971 (0) 4 3594174
Mobile: +971 (0) 50 6251329
Posted by Anne-Birte Stensgaard, Senior News EditorWednesday, September 29 - 2004 at 13:11 UAE local time (GMT+4)
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This article was updated on Thu Feb 22 2007.
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