Letter of Guarantee

Get your Letter of Guarantee issued in just 60 minutes available at 100+ branches across KSA

Issuing letter of guarantee though Etimad

Letter of Guarantee

A Letter of Guarantee is a formal and irrevocable commitment issued by alrajhi bank on behalf of its client to a third party beneficiary, ensuring payment in case the client fails to fulfill the contractual obligation. This service supports businesses by enhancing their credibility and enabling smoother participation in tenders, contracts, and large transactions.

Benefit and Features

Trust & Security

Provides financial assurance to support your bids, tenders, and contractual obligations.

Transparency & Tracking

Enables easy monitoring of outstanding payments and obligations.

Compliance & Reliability

Ensures contractual obligations are met as per terms , building long term trust with stakeholders.

Products

Bid Bond
During a bid-based selection process, a Bid Bond assures the project owner that that bidder will accept the contract if selected and will carry out their obligations. in the event of the bidder refusing to accept the contract, the bank issuing the bid bond will pay the agreed amount to the project owner.
Financial Guarantee
A payment guarantee protects the beneficiary when payments due are not made for good delivered or service provided. They are also used to mitigate risk when businesses deal with foreign markets.
Advance Payment Bond
Project owners will sometimes make payments to a contractor before commencement of a project to make certain preparations. An advance payment bond is a Guarantee that allows the project owner to recover advance payment extended to the contractor in the event of a default in meeting contractual obligations.
Retention Guarantee
A retention bond safeguards the interests of the customer against deficiencies after a project is completed and prior to final acceptance. It guarantees that the contractor will rectify the defects.
Standby Letters of Credit
Standby letters of credit are often used in trade transactions as a secondary payment mechanism. It is issued by the bank on behalf of its customers to assure the beneficiary of the customer's ability to deliver under the terms of the contract. The beneficiary can cash a standby letter of credit if the customer fails to fulfill a contractual obligation. It can be canceled as soon as the terms of the contract have been met by the customer
Customs Guarantee
A custom surely bond is issued in favor of the department of customs as a security against non-payment of the importers’ custom dues.
Performance Bond
A performance guarantee safeguards the beneficiary from a monetary loss if the party to whom a contract is awarded fails to deliver on the contractual obligations. The bank issuing the performance will pay the beneficiary the agreed sum if the project not completed.
Advising LG
Based on a foreign bank’s request, Al Rajhi can advise a beneficiary in Saudi Arabia that a guarantee is Available. Al Rajhi responsibility is limited to verifying the authenticity of the instruments and advising the beneficiary without delay.
Zakat Guarantee
A Zakat & income tax bond is issued in favor of the department of Zakat & income tax as security against non-payment of outstanding income tax, penalty for delays.

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Letter of Guarantee

Get your Letter of Guarantee issued in just 60 minutes available at 100+ branches across KSA