Overview
Bonds and Guarantees
If your business is concerned about the risk of international trade, bonds are worth considering. Bonds are synonymous with Guarantees. They're an irrevocable commitment by us - or another bank acting on our instructions - to effect a payment, provided the terms of the bond are met. If the customer fails to comply with the terms of the underlying contract, then the beneficiary 'calls' the bond and receives financial compensation from us. Your business can choose from different classes and types of bond, each designed to cover varying trading circumstances.
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Products Offered
Bid Bond
A guarantee issued to facilitate the selection process and award of a project/contract tender.
Performance Bond
A surety bond issued promising to pay the principal an agreed amount of monies on failure by the Bank’s customer to fulfill or meet the obligation of a contract.
Payment Guarantee
This is an irrevocable undertaking on the part of the Bank to pay an agreed sum of monies in the event that the Bank's customer fails to meet its payment obligation to the beneficiary.
Security Deposit for Labour Quota
This guarantee is issued to the Government specifically in favour of The Commissioner of Labour indemnifying that the Bank will pay an agreed amount of monies on demand by the Government.
Letter of Certification
Letter issued by the Bank indicating the state of the customer's credit standing on request by the customer or a third parties with the customer's consent. The letter is issued free of charge.
Letter of Intent
Letter issued by the Bank to third party (e.g. Government Ministries, Department, Tender Committee) stating its' intention to provide and issue the required Banker's Guarantee up to 10% of the accepted project/contract tender value, on condition that the customer submit the necessary security documentations required by the Bank.
Letter of Undertaking
Letter issued by the Bank to third party (e.g. Government Ministries, Department, Tender Committee) undertaking to issue the required Banker's Guarantee up to 10% of the accepted project/contract tender value, and/or provide financing facility to the customer on condition that the company submit the necessary security documentations required by the Bank.
Letter of Support
Letter issued by the Bank at the consent of the customer to third party (e.g. Government Ministries, Department, Tender Committee) giving the Bank's opinion on the creditworthiness, management and financial standing in support of the customer's bid for tender/contract from the third party.
If you would like to learn more, feel free speak to us here.
