A Guarantee Bond is an accessory guarantee in which a guarantor binds itself for a fixed amount in order to cover a debt or default, etc., for its applicant/instructing party, who is already bound to the beneficiary via the underlying contract/relationship. Should the applicant/instructing party become unable to fulfil the underlying contract, the guarantor becomes obligated to pay according to the terms of the guarantee.
In a Guarantee Bond there is a linkage between the guarantee and the underlying contract, in most cases, this means that a demand must prove the contractual default. It can be issued for domestic or abroad contracts, for any amount and in any freely traded currency, using standard or bespoke wording.
We can arrange many different types of guarantees to cover different scenarios, indeed a wide range of guarantees are available to cover many kinds of risk as: Performance Bond, Bid Bond/Tender Guarantee, Advance Payment Guarantee, Surety Guarantee Bond.
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