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Mon 3 Sep 2007 04:00 AM

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Fortis utilises Dubai Gold Receipt

The Dubai Gold Receipt (DGR), an electronic warehouse receipt system operated by the Dubai Multi Commodities Centre (DMCC) has enabled Fortis to extend US$17.8m in financing to INTL Commodities, a DMCC member company and part of a group that has offices in locations around the world, including Dubai, New York, London, Florida and Singapore.

The Dubai Gold Receipt (DGR), an electronic warehouse receipt system operated by the Dubai Multi Commodities Centre (DMCC) has enabled Fortis to extend US$17.8m in financing to INTL Commodities, a DMCC member company and part of a group that has offices in locations around the world, including Dubai, New York, London, Florida and Singapore.

The financing constitutes part of the Fortis-led US$140m syndicated loan extended to INTL Commodities.

This is the first time that international organisations have used the Dubai-based DGR model to enable collateralised financing in Dubai.

The DGRs were issued against a total of 799kg of gold and 1,500kg of silver. Brinks Global Services, the security services company, is serving as the vault operator for the transaction.

The DGR is an electronic vault receipt system that provides members with real-time access to various forms of gold stored in DMCC-approved vaults.

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