DMCC receives Euromoney Trade Finance ‘Deal of the Year 2008' award
At the recent annual awards of Euromoney's Trade Finance Magazine held in London, Dubai Multi Commodities Centre (DMCC) was presented with the "Deal of the Year 2008" award for its Global Multi Commodity Receipt (GMR)-facilitated transaction.
The award was in recognition of the GMR-facilitated US$10 million rice financing transaction by Standard Chartered Bank for Mohsen Line Trading, a rice trader based in Dubai. The financing was used by the rice trader to purchase large quantities at harvest and meet its working capital requirements.
This is the second consecutive year that DMCC's GMR-facilitated trade financing transaction has been awarded this prestigious honour. Last year, the GMR- backed transaction for financing of steel products at Fujairah received the "Deal of the Year 2007" award.
The GMR is set to become an important risk mitigating tool for financiers. Under the terms of the GMR, members who store their physical inventory in a DMCC-approved warehouse, or who assign control over their goods to an approved Collateral Manager, can be issued a GMR against the value of those goods. The member can then use the GMR to conveniently obtain financing from member banks.
