A Letter of guarantee is an undertaking by Al Rajhi Bank on behalf of its customer to pay a certain sum of money to a beneficiary in case of default by the applicant in meeting certain terms and conditions of an agreement and contract.
Forms
Letters of Guarantee can be in the form of Bank Guarantees, Performance Bonds, Bid Bonds, Shipping Guarantees or Standby Letter of Credit and others.
Product Definition
A Letter of guarantee is an undertaking by Al Rajhi Bank on behalf of its customer to pay a certain sum of money to a beneficiary in case of default by the applicant in meeting certain terms and conditions of an agreement and contract. Al Rajhi Bank issues or advises all types of letters of guarantee, which comply with international standard, local regulations and the bank’s principles.
Features and Benefits
Secure customers entering into bids, sales contracts, and tenders.
Ability to track outstanding payments and orders easily.
Fulfillment of contracts with counterparties, based on the guarantee terms.
Transaction Mechanism
Al Rajhi Bank issues, advises, amends, extends, and liquidates, all based on customer requests.
