Letters of Guarantee (L/Gs)
A Letter of Guarantee is an irrevocable legal and financial undertaking issued by the Bank at the request of the applicant (the guaranteed party) in favor of a third party (the beneficiary). Under this instrument, the Bank is unconditionally obligated to pay the guarantee amount upon first written demand without any delay. Letters of Guarantee serve as the optimal practical alternative to cash deposits required to fulfill contractual and commercial obligations. They are issued either against extended credit facilities granted to the client or secured by a 100% full cash margin.
Key Advantages
Smart Alternative to Cash Collateral: Optimizes your cash flow and working capital by preventing the freezing of liquid funds as direct project security.
Enhanced Solvency, Credibility, and Competitiveness: Grants your business high credibility and substantial trust before beneficiaries (both public and private sectors), as the commitment is backed by a financially sound and compliant banking institution.
Bid Bond and Tender Participation Support: Enables you to efficiently meet preliminary terms and successfully bid on public and private procurement tenders and projects.
Integrated Local and International Solutions: The Bank offers flexible capabilities, including the issuance, advising, and confirmation of letters of guarantee both locally and globally through an extensive correspondent banking network.
Flexible Collateral Structures: Guarantees can be structured and issued based either on a customized credit facility assessment tailored to your business operations or secured via a cash margin lockup.