ING Bank Singapore Branch has become the latest bank to be approved to issue letters of credit (L/Cs) for trading on Dubai Mercantile Exchange (DME) directly from Singapore.

The move is part of DME's strategy for improving its offer to customers in Asia.

Oman Blend

According to DME, the approval of ING is part of its ongoing efforts to have a diverse roster of international banks authorised to issue L/Cs directly from Singapore.

ING Bank joins the handful of banks, including Mizuho Bank, Rabobank and Royal Bank of Scotland (RBS), licensed to issue DME L/Cs directly from Singapore to guarantee deliveries of Oman Blend crude oil (DC World News, 12 January 2015).

Sustained interest

According to ING Bank's head of international trade and export finance in Asia, Catherine Low, the bank's clients in the global energy market are showing a sustained interest in DME's flagship Oman crude.

DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. Global financial institutions and energy trading firms including Goldman Sachs, JPMorgan, Morgan Stanley, Shell, Vitol and Concord Energy also hold equity stakes in the DME.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.