Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) on Saturday announced the launch of its back-to-back letter of credit (LC) facility, a core component of its structured trade finance capability.
Colin Fraser, head of the bank's Wholesale Banking Group, said that "due to farsighted development and its strategic geographic location, the UAE has rapidly developed into a major regional and global trade hub.
"This has successfully positioned the country as a world-class player, complemented through the development of free trade zones which are closely aligned with the major ports and airports across the UAE.
"At ADCB, our focus is to provide the best of trade solutions to support our valued customers.
"It is with this at the forefront of our thinking that we have launched our structured back-to-back trade finance capability today, which will help many of our clients to leverage new and existing opportunities for trade business," he said.
The back-to-back LC facility is the financing of an import deal on the strength and security of exports.
It gives the trader the fin-ancing capabilities to buy goods or commodities on the strength of the finance available through the sale proceeds of those goods to a third party.
In times of global liquidity constraints, the back to back product gives businesses the liquidity they need to sustain their international trading business.
