National Bank of Fujairah was recognised by international industry peers at the 6th Annual Trade Finance Awards
NBF wins international award for ‘deal of the year’ National Bank of Fujairah honoured for AED 72 million online Dubai Commodity Receipt which was most innovative structured transaction during 2007
National Bank of Fujairah was recognised by international industry peers at the 6th Annual Trade Finance Awards held at the prestigious New Connaught Rooms in London on Thursday 19th June. NBF was awarded the 'Deal of the Year' for facilitating the most innovative structured transaction undertaken during 2007.
Steve Mullins, CEO, NBF, said, "Trade Finance has global reach and this award is testimony to the dedication and professionalism of the management team at NBF. It also underscores the importance of creative finance solutions, not just in commodities but right across the corporate spectrum."
Having been mandated by Greek steel company Athena SA, NBF arranged financing to execute a contract for the construction of the south breakwater berths at Fujairah Port valued at AED 130 million. The major component was an inventory financing limit of AED 72 million which was secured by Dubai Commodity Receipts (DCRs) or electronic warehouse receipts, which are offered online by Dubai Multi Commodities Centre (DMCC).
Construction materials were imported by Athena under letters of credit issued by NBF and were stored in a 'field warehouse' at the port. GeoChem, the collateral manager, issued the DCRs covering the stockholding in favour of NBF. After accepting the pledge, NBF disbursed the funds to accommodate the scope of works to be undertaken, using the stock as collateral.
"Because the DCR is conveyed in an electronic environment, Athena was able to use the inventory as collateral enabling us to arrange short term financing," added Mullins.
In fact it was quite a week for NBF. In addition to the 'Deal of the Year' award, NBF had already been presented with the Golden Category Award by the Securities & Commodities Authority. NBF was recognised for the quality of its financing reporting, both in terms of timing and disclosure during 2007.
Commenting on the award, P.B. Das, Head of Wholesale and Institutional Banking at NBF said, "To win an award from the Securities & Commodities Authority is praise indeed. It proves without doubt that size is no substitute for quality and we will ensure that we maintain our own high standards of reporting and absolute transparency, for the benefit of all NBF stakeholders."
About National Bank of Fujairah
National Bank of Fujairah started operations in 1984 in the Emirate of Fujairah. Its key shareholders include the Government of Fujairah (39%) and the Government of Dubai (10%). It is primarily a corporate bank with strong trade finance expertise, and rapidly growing businesses in Wealth Management and Commercial Banking. National Bank of Fujairah is currently deepening its product range by selectively expanding its retail banking services while continuing to build its core businesses. NBF's current branch network stands at 12.
NBF is listed on the Abu Dhabi Securities Market under the symbol "NBF".