The Royal Bank of Scotland (RBS) has today been approved to issue letters of credit for trading on DME directly from Singapore. The approval reflects DME and RBS’s joint commitment to facilitate the trading activities of their mutual customers in Asia.
RBS will be able to issue Letters of Credit (LCs) directly from Singapore to guarantee deliveries of Oman Blend crude oil through the DME, helping to create a more efficient and cost-effective trading ecosystem around the Exchange. Previously all DME Letters of Credit had to be issued via an entity in the US.
Christopher Fix, Chief Executive of DME, said: “This announcement highlights our commitment to providing our participants with the best possible trading environment. Asia has played an extremely significant role in DME’s recent sustained growth. Our customers in Asia have requested us to facilitate the financing of their crude oil deliveries and we have responded with this initiative to facilitate Letters of Credit directly from banks based in Singapore. We are delighted to see RBS accepted under this scheme and we hope that our mutual customers in Asia will take advantage of this new financing opportunity.”
Adrian Ong, Head of Transaction Services, Singapore at RBS said: “We are delighted to participate in this new initiative because our clients will benefit from the direct issuance of LCs from Singapore. As one of the leading Trade Finance banks in Asia Pacific, RBS has well established banking relationships with major commodities players globally. Our participation in this new initiative reflects our focus on delivering greater efficiencies for our clients to trade and to take delivery in the global energy markets.”