Bank guarantee | Austrian Anadi Bank

Bank guarantee

A bank guarantee is a security instrument and not a payment instrument.

As a rule, no payment of the amount guaranteed should take place. By issuing a bank guarantee, the bank assumes the irrevocable obligation to pay a specified amount of money your behalf if you do not fulfil a specific contractual obligation. In that case, the beneficiary is entitled to invoke the bank guarantee. Depending on the purpose, the following types of guarantees are available:

  • Payment guarantee
  • Advance payment/down payment guarantee
  • Bid bond
  • Performance bond
  • Warranty guarantee
  • Retention money guarantee
  • Credit facility guarantee
  • Customs guarantee
  • Letter of indemnity

We can submit the bank guarantee to the beneficiary either directly or through an advising bank. Bank guarantees for foreign countries are issued in cooperation with international banks. These will issue a direct guarantee which is subject to recourse against our bank. We will also be pleased to check bank guarantees made out in your favour by foreign issuers.

Letter of Guarantee Application
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