• Bonds and Guarantees are written undertakings, either conditional or unconditional, issued by Bank on customer’s behalf to indemnify the beneficiary (the buyer of goods or services, the supplier). EDBI is an experienced bank in respect of issuing diverse types of Guarantees.

      Letters of Guarantee

      Guarantees

      Bonds and Guarantees are written undertakings, either conditional or unconditional, issued by Bank on customer’s behalf to indemnify the beneficiary (the buyer of goods or services, the supplier)

      The types of Guarantees offered by EDBI include:

      Tender Guarantee/ Bid Bond

      Tender Guarantee is designed to deter companies from making a tender and then rejecting the contract when it is awarded to them because they have lost interest in the transaction.

      Performance Guarantee (PBG)

      Performance Guarantee is designed to ensure that goods are delivered or services rendered in accordance with the terms of the contract and at the agreed time.

      Advance Payment Guarantee (APG)

      The basic purpose of an advance payment guarantee is to ensure that an advance payment is used in accordance with the intentions of the contract concluded between the buyer and the seller.

      Retention Guarantee

      Retention bonds are used when it has been agreed that the importer will pay the remaining part of a purchase amount – which the importer would normally have retained during the guarantee period – to the exporter before the amount falls due. A retention bond ensures that the exporter will pay back this amount if it fails to meet its contractual obligations

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