Bank Guarantee

A bank guarantee is an irrevocable undertaking of the issuing bank (guarantor) to pay to the guaranteed receiver (beneficiary) if certain obligations of the applicant are not fulfilled or partially fulfilled.

 

Detail Information

Your business could leverage this to issue various types of bank guarantees, including: Bid Guarantees, Performance Guarantees, Advance Payment Guarantees, Retention Guarantees, Payment Guarantees, Defect Liability Guarantees, Shipping Guarantees, and Standby Letters of Credit.

Bank Guarantee Type

  • Payment Guarantee or Standby Letter of Credit
  • Performance Guarantee
  • Guarantee Advising
  • Bid Guarantee
  • Advance payment guarantee
  • Retention Guarantee
  • Shipping Guarantee

Pricing

NoDescriptionFee Charge
1Shipping Guarantee under LC0.125% p.m (1.5% p.a)
2Bank Guarantee Issuance
3Guarantee AmendmentAmount and expiry date: 0.125% p.m (1.5% p.a)
All others: $50
Guarantee Amendment through Swift
  • Fee: $50
  • Cable Charge: $30 (Swift Message)
4Guarantee Cancellation Requested by applicant (after BG issued)USD100 flat
5Processing Fee (p.a)1% of BG amount
6Renewal Fee (p.a)1% of BG amount
7Payment of claim/ drawing (deducted from beneficiary)0.125%, min. USD50

Benefits

  • As an irrevocable promise from the bank, this guarantee serves as strong proof of your financial stability and commitment to your partners or project owners.
  • Essential for participating in government and large private tenders, specifically through Bid Bonds, giving you access to major business opportunities.
  • Instead of locking up your working capital as a cash deposit for security, you can use the bank's guarantee, keeping your funds available for other operational needs.
  • Comprehensive Coverage: Whether you need Performance Bonds, Advance Payment Guarantees, or Standby LCs, we offer a full range of solutions to cover every stage of your project lifecycle.

Request Form

To help you get started quickly, we have provided all essential Trade Finance application forms here. Simply download and complete the relevant documents to initiate your trade services efficiently.

For More Information

  • Visit our nearest branch to speak with our staff directly.
  • Contact our Call Center for Guidance and Support via Facebook Page or call: 023 980 888 / 093 671 111

Terms and Conditions

Terms and conditions are subject to change at the discretion of the Bank without prior notice to the Customer.

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