1. Foreign Guarantees

2. Guarantees Contractual Obligation Irrevocable Obligation Sum of Money Non-performance

3. Target Regularly Tender for Business Construction and Engineering Companies Cross-Border Guarantees

4. Types of Guarantees Bid/Tender Bond Performance Guarantees Surety Bonds Advance Payment Guarantees Facility Guarantee Payment Guarantee Standby Letter of Credit Retention Money Guarantee

5. Bid Bonds Ensure Non Withdrawal Condition of Permission to Tender 2% - 10% of Contract Value

6. Performance Bonds Underwrite Contractor’s Performance Indicates Contractor’s Creditworthiness 5% - 10% of Contract Value

7. Advance Payments Working Capital 10% - 20% of Contract Value Undertaking Given to Refund Amount Prepaid

8. Gives Credence to Customer’s Capability to Fulfil Obligations Benefits Reputable RSA Banks Accepted Worldwide Favourable Terms

9. Considerations Credit Limit Required Payable on Demand Bank: – Not Obliged to Examine Validity – Legally Obliged to Pay