Issuance of licensing letters of guarantee.

• On-demand and conditional guarantees.

• Provision of bid bonds, advance payment guarantees, performance guarantees, and retention guarantees.

• Provision of shipping guarantees and customs bonds.

• A letter of guarantee is an undertaking by the Bank, independent of the underlying trade agreement between the applicant and the beneficiary. It is issued directly in favor of the beneficiary, with the Bank undertaking to settle amounts due without delay upon receipt of a payment demand that complies with the agreement and the terms of the guarantee.

Letters of guarantee issued by Riyad Bank are considered a “direct guarantee.” Where Riyad Bank instructs another bank to issue the guarantee, it is considered a “counter-guarantee”; where that other bank issues the guarantee itself, it is considered an “indirect guarantee.”