A bank guarantee is a lending institution's promise to cover a loss if a borrower (their customer) defaults on a debt to a third party.
Exclusively issued by Euro Exim Bank Ltd in St. Lucia
The guarantee lets a company buy what it otherwise could not, thereby helping business growth and promoting entrepreneurial activity.
Whilst these guarantees can come in various forms Euro Exim Bank Ltd specialises in performance and financial guarantees only, which are exclusively not cash backed.
Types of Bank Guarantee we offer
Advance Payment Guarantee
Bid Bond Guarantee
Deferred Payment Guarantee
Foreign Bank Guarantee
- EEB receives underlying relationship contracts (Ex: Sales Contract / pro-forma invoice).
- EEB creates the first draft BG and send quote to you, stating the Bank's charges within 3 working days.
- Once the draft has been accepted, we send the indemnity documents which must be signed and notarized by an appropriate legal representative.
- EEB send you formal invoices for our indemnity process and issuance charges.
- Once invoices are paid and all indemnity documents are received, subject to legal and compliance acceptance, we will SWIFT the instrument to the beneficiary's bank.
- Applicant pays the beneficiary at least 14 days before the expiry date.
A Tender Guarantee is issued by the Bank at the request of the Tenderee, for bids of construction or procurement of projects, committing that the tenderer will not withdraw or amend its bid during the validity period of the bid, and will sign the contract or submit performance guarantee once the bid is won.
- The applicant fills out an application form or a contract for issuance of a letter of guarantee and tenders same to the bank along with the specimen guarantee format required by the beneficiary.
- The applicant pays margin as per the banks requirement.
- Examination and issuance of letter of guarantee if as per the banks tender guarantee format.
- If the format defers from the banks guarantee format same could be referred for legal advice.
- If covered by 100 % cash margin, the bank may issue the guarantee after obtaining sanctions from the credit authority
- Upon customer qualification, underlying transaction and relevant documents EEB confirms the customer's margin or credit line and other mortgages
- EEB issues the letter of guarantee.