Bid bond
Fund your bid bond with a 50% cash cover
Valid to: December 31, 2026
About Offer
A commitment issued by the bank in favor of a specific party (usually the entity requesting the tender or project) at the client’s request, in which the bank guarantees the client’s obligation to participate in the tender and execute the project if awarded. In case the client fails to fulfill their obligations, the beneficiary has the right to claim the guarantee amount from the bank.
You can now fund your bid bond with a 50% cash cover.
Apply now and take advantage of this opportunity!
Terms and Conditions
- Beneficiary of bid bonds has to be a government and semi-government entities for this program.
- Only SAMA approved text is allowed.
- Per client exposure must not exceed SAR 3 Million (SAR 1.5 million clean) and the tenor must not exceed 180 days.
- The applicant must submit a duly signed Promissory Note (for the value of exposure) (and PN signed by owner for MSME and Enterprise Mass clients).
- For first time applicants, a master agreement would need to be signed by the authorized signatories without value. For subsequent guarantees, this agreement would suffice.
- Additionally, Overdraft agreement will need to be signed for the value of the exposure for each new guarantee issuance request under the program.
- Client must have a minimum of 3 years in operation as per CR. If not met, then cash margin will increase to 75% (instead of 50%).
- Previous six months account pay-ins (does not include finance repayment or reversals) to be equal to or higher than the guarantee(s) exposure, Otherwise, cash margin to be increased to 75% instead of 50%.