Tender Guarantees (Bid Bonds)
Need a bid bond that will pass procurement checks. We arrange on-demand bank guarantees or standby LCs with exact wording, clean beneficiary details, and dates that match the tender. Draft today. Issue when the counter-indemnity and margin are in place. No games.
Who we serve
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EPC and construction bidders
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Suppliers in public and private tenders
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Distributors with framework bids
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SMEs needing repeat bonding capacity
When it fits
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Tender asks for 1–2% bid security, on-demand form
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Portal upload or physical original required
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Validity equals bid period plus 28–60 days
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Extension or amendment likely during evaluation
What we arrange
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On-demand bank guarantees under URDG 758
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Standby LCs under ISP98 where accepted
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Local issuance or A-rated confirming bank
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Fast amendments, extensions, cancellations
Tender instruments at a glance
| Instrument |
Where it fits |
Typical amount |
Rules & wording |
| On-demand Bank Guarantee |
Most public tenders and SOEs |
1–2% of bid price, sometimes capped |
URDG 758, beneficiary text mirrored word-for-word |
| Standby LC (Tender SBLC) |
Where SBLCs are allowed by the RfT |
Aligned with bid bond percentage |
ISP98 or UCP600, clean on-demand drawing |
| Surety Bond (select markets) |
Private tenders that accept surety |
As required by tender docs |
Local surety forms, on-demand wording preferred |
What clears credit
Counter-indemnity
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Corporate counter-indemnity signed by the bidder
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Board resolution and signatory list
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Parent support where the bidder is thin
Collateral
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Cash margin or standby LC back-to-back
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Charges over deposits or escrow control
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Evidence of tender capacity and track record
Wording control
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Beneficiary name and address exactly as in RfT
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Amount in figures and words, currency stated
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Validity date and claim period match tender rules
Typical terms
Amount & tenor
1–2% of bid value or per tender cap. Valid through bid period plus buffer, often 28–60 days. Extensions available on request.
Fees
Issuance fee plus a time-based guarantee commission. Amendment or extension fees apply. Courier or portal fees if originals or e-bonds are required.
Delivery
Swift MT760 for SBLCs or original paper with wet signature and seal for bank guarantees. e-Guarantee where the portal accepts it.
What we need to issue
Tender data
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RfT or Annex with required wording
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Beneficiary name, address, tender ref
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Amount, currency, expiry, claim window
Applicant file
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KYC pack, incorporation, tax, licenses
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Last 12 months bank statements or auditeds
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Track record and live pipeline summary
Security & payment
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Counter-indemnity signed
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Margin or back-to-back SBLC received
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Fees settled before issuance
Process to draft and issue
1
Wording and eligibility
We mirror the required tender text, confirm rules, and validate beneficiary details. Quick pass or fix list.
2
Credit and terms
KYC, counter-indemnity, margin level, and fees set. Delivery mode agreed, paper or Swift.
3
Draft and approval
Issuer releases draft for your check. We match every line to the tender. Final sign-off in writing.
4
Issue and deliver
Original issued and couriered, portal upload completed, or MT760 sent. Amendments handled as needed.
Tender guarantee FAQ
What is a tender guarantee?
An on-demand undertaking by a bank or issuer to pay the beneficiary if the bidder withdraws, alters terms, or fails to sign when awarded.
Is a standby LC acceptable?
Yes where the RfT states bank guarantee or standby LC. We use ISP98 wording for clean claims.
How fast can you issue?
Draft same day after KYC. Issue once counter-indemnity, collateral, and fees are in place.
Do you issue without collateral?
No. There is always margin, a back-to-back SBLC, or equivalent security. If someone says otherwise, they will not deliver.
What happens on claim?
Issuer pays if the claim meets the wording. Your counter-indemnity is called and margin is applied. Keep wording tight and performance aligned.
Can fees be refunded if you lose the bid?
No. Fees cover credit, drafting, and issuance work. We can cancel the bond after its purpose ends.
Send the tender wording. Get a draft today.
Share the RfT annex or sample form, beneficiary details, amount, expiry, and delivery mode. We will respond with terms, draft wording, and a checklist to issue on time.
Request Tender Guarantee
We act as an arranger on a best efforts basis through regulated partners. Eligibility depends on KYC and AML, sanctions screening, legal review of wording, and approval by capital partners. Nothing here is a commitment to issue.