The following guarantees can be issued by Asia Green Development Bank Limited:
1. Transfer Bond/ Bid Bond/ Bid Security
2. Performance Guarantee
3. Advance Payment/ Down Payment Guarantee
4. Repayment Guarantee
At AGD Bank, we issue the above-mentioned guarantees to government departments or private limited companies.
We also issue our counter guarantee to foreign countries, through our Correspondent Bank by SWIFT, and reissue or advice our guarantee on behalf of correspondents abroad.
Issuing of our Guarantee may be defined as the irrevocable obligation of a bank to pay a sum of money in the event of non-performance of the contract’s terms and conditions.
The guarantee amount, commission and charges are payable in advance for the whole period of validity of the guarantee by cash or bank account.
The guarantee amount may be deposit by Trade Finance, as the applicant’s request.
AGD Bank issues a Performance Guarantee on behalf of a service contractor or exporter who has to effectually perform all the conditions of the contract between themselves and the company that awarded the contract.
A contract is made between the Principles and Beneficiary for the supply of goods/services.
In the event of default or failure to perform the obligations set under the contract, the beneficiary may be able to claim the amount and the bank undertakes to pay the claim amount, eg, the constructions.
Advance Payment / Down Payment Guarantee
AGD Bank issue Advance Payment Guarantee/ Down Payment and Progress Payment Guarantee
(i) on behalf of the suppliers of raw materials / finished goods or
(ii) on behalf of a contractor for execution of contract when the contractor receives the advance payment. These guarantees give protection to the buyer who has made in advance or progress payment to the exporter before the contract has been completed. These guarantees provide for the repayment of the advance or progress payment should the exporter fail to carry out the contract terms.
AGD Bank issues a Repayment Guarantee to help protect the interest of the party awarding the contract (beneficiary) in respect of the repayment of payment or advances made by them, in the event of the principle not fulfilling the contract.
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