Bank Guarantees:

Bid Bond:

A bid bond provides a guarantee that a winning bidder will take up the contract as per the terms at which they bid. A bid bond ensures compensation to the bond owner if the bidder fails to begin a project.

Performance Guarantee:

A written document issued by AIB at the request of its customer (the applicant) to the owner of a contracted project (beneficiary), guaranteeing the applicant will strictly perform the contract.

Advance Payment Guarantee:

An advance payment guarantee mitigates a buyer’s prepayment risk. If the seller breaches the contract, the buyer receives a refund. In that case, the agreement is considered null and void. It is also referred to as an advance payment bond.