Bank Guarantee

Guarantees in Foreign Transactions and Trades

Importers (Buyers) who wish to ensure the proper performance of exporters’ (sellers’) obligations, may ask the seller to provide a guarantee. This would be a written undertaking by a guarantor, usually a bank, to pay the buyer up to a maximum sum quoted in the guarantee text upon presentation of a demand together with any other documents under the terms of the guarantee. There are two basic ways of issuing a demand guarantee:
Direct Guarantees are used primarily in domestic business and is issued directly to the beneficiary.  Due to cost and risk considerations, direct guarantees are increasingly being used in foreign business as well.
An Indirect Guarantee is often issued for export business, especially when government agencies or public entities are beneficiaries. Many companies do not accept foreign banks and guarantors. So in order for sellers to meet their international trade requirements, a second bank, typically a domestic bank which is acceptable for them, is utilized.
Guarantees in Bank Melli Iran
A) Guarantees in Export Operations
These types of bank guarantees are issued at the request of Iranian producers of industrial, agricultural and mining products and the exporters of technical and engineering services. Types of these guarantees are:
Tender or Bid Guarantee
Performance Bond Guarantee (PBG)
Advance Payment Guarantee (APG)
Retention Guarantee which may be issued in respect of a contract or letter of credit
Other types … .
A-1) Areas of Activities
Guarantees for (Internal) Domestic Contracts
This type of guarantee is issued with regard to contracts concluded in Iran, required by Iranian suppliers.
Guarantees for Exporting Technical and Engineering Services
This type of guarantee is issued to facilitate the export of Iranian engineering and technical services.
Guarantees for Exporting Goods
This type of guarantee is issued to facilitate the export of goods from Iran.
B) Guarantees in Import Operations
Import guarantees are issued at the request of foreign sellers/contractors through counter-guarantees of correspondent banks in favor of Iranian buyers/importers. Local and international credit rating of seller’s bank and provisions of counter-guarantees are the most significant factors in assessment of counter-guarantors and acceptance of their liabilities. Types of import guarantees are:
Tender or Bid Guarantee
Performance Bond Guarantee (PBG)
Advance Payment Guarantee (APG)
Retention Guarantee which may be issued in respect of a contract or letter of credit
Other types … .
 C) IDB -Guarantees related to facilities granted by Islamic Development Bank (IDB)
Why choosing us:
Experience
We have near a century of experience in rendering banking services including issuance of different types of guarantees.
Our Fast and Secure Services
The guarantee issuance procedure takes the least time.
Advising of Bank Guarantees
We advise guarantees issued by other banks to Iranian companies.
Cost-Effective Commission and Charges
Commission and charges for issuance of guarantees are most competitive.
For further information please contact Foreign Guarantees Department at:

Export Section
Tel:  +9821 23583311                       
Fax: +9821 26403765     
Email: iodlgexp@bmi.ir
Address: P.O. Box 1549634811, No.190, Mirdamad Blvd., Tehran, Iran.
Import Section
Tel:  +9821 23583325                       
Fax: +9821 26403765     
Email: iodlgimp@bmi.ir
Address: P.O. Box 1549634811, No.190, Mirdamad Blvd., Tehran, Iran.