A Kafala (Bank Guarantee) issued by the Bank is a formal commitment to compensate the beneficiary, whether local or foreign, if the applicant fails to fulfill the obligations specified in the guarantee contract. The guarantee is subject to the terms and conditions of the applicable guarantee agreement.
Issued at the request of a bidder in favor of a specified beneficiary, a Bid Bond Guarantee provides assurance that the bidder will fulfill its obligations during the bidding process, including accepting the award if selected. The Bank will honor valid claims in accordance with the terms and conditions of the guarantee.
Issued at the request of a successful bidder, a Performance Bond Guarantee provides assurance to the beneficiary that the contractual obligations will be fulfilled. It covers valid claims arising from the bidder’s failure to deliver goods or perform services in accordance with the agreed contract terms and conditions.
Issued at the request of a seller or contractor in favor of a buyer who makes an advance payment, an Advance Payment Guarantee provides assurance that the advance payment will be reimbursed if the seller or contractor fails to fulfill the contractual obligations. The guaranteed amount may be reduced proportionately as goods are delivered or project progress is achieved.
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