DGR enables financing of over $100 million

DUBAI -Secured financing has reached unprecedented levels in the UAE with the Dubai Gold Receipt (DGR) enabling financing of over $100 million over the past eight months, according to an announcement from Dubai Multi Commodities Centre (DMCC).

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Published: Wed 6 Feb 2008, 8:59 AM

Last updated: Sun 5 Apr 2015, 12:20 PM

Gold traders, bullion banks and vault operators have used DGR, an electronic vault receipt system operated by DMCC, to enable US$103.8 million of financing against a total of 4,442 kgs of gold and 1,500 kgs of silver stored in DMCC-approved vaults in the UAE. All DMCC-approved vault operators -Brinks Global Services, Transguard and Group 4 Securicor International -have been utilised for these transactions.

DGR, an innovative tool for facilitating trade finance activities for gold and silver, is an integrated electronic vault receipt system designed to enable businesses to access lines of credit against their inventories, by pledging them in favour of member banks. Under the terms of DGR, members who store precious metal in a DMCC —approved bullion vault -can be issued an electronic DGR against the value of the goods. The member can then use the online vault receipt to obtain financing from member banks and financiers.


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