Features

• Usually used to bid for tenders, as a contract requirement, or to guarantee payment obligation
• Takes the form of a Financial Guarantee which ensures the fulfilment of financial obligation by you, and a Performance and Tender Bond, which ensures the performance of an act agreed between you and the beneficiary
• Can be issued to a local party as well as a foreign party
• Contains a specific validity period of coverage and claim period
• Also available under Islamic financing as Bank Guarantee-i
• Available to customers with a trade facility or on an ad hoc basis (with certain limits prescribed)
• Backed by over 400 branches nationwide, a network of over 80 international offices and more than 800 correspondent banks worldwide

Benefits

• Reflects on your capability to carry out payment obligations
• Allows you to obtain favourable trade terms from the beneficiary if a BG is produced
• No necessity to raise cash to meet the deposit requirements, and funds could be used to support working capital requirements
• Allows you to have access to funds especially where a BG is issued for advance payment or for the release of retention funds under contracts

Types of Bank Guarantees

• Tender Guarantee / Bid Bond
• Performance Guarantee
• Advance Payment Guarantee
• Warranty Maintenance Guarantee
• Retention Guarantee