An Engineering, Procurement and Construction company in short (EPC) specialized in developing Water treatment equipment approached us to secure a bid bond (tender guarantee) to participate in the middle eastern government tender, where our applicant is the participant and competing against few huge and mid-level corporations but with a decisive mindset. The applicant requested us a hard copy of the bid bond through one of our banks, earlier it seems a bit odd for us though we are in a digital world and we consider Telegraphic Transfer mode is an old school procedure, Though we use SWIFT mode these days. So we took a chance and read the client’s proposal and tender demands. 

While drafting the bid bond (Tender guarantee) we were curious about the wording  a.ka. content verbiage of the guarantee draft, and it was so specific which cannot be altered nor our compliance team will authorize. It took roughly 3 days to review the tender document which was governed by the middle eastern law. And we were patience to review only the bid bond contents in a tender document to alter and prepare the specific wording for the (Applicant). Due to a good credit rating maintained by the applicant and legible beneficiary (UAE Government), our compliance team approved the draft and validated to prepare a hard copy bid bond. 

The value of the bid bond is approximately $250,000.00 (Two hundred and fifty thousand US Dollars), Valid for 120 days from the date of issuance and dispatched the hard copy of the instrument to the applicant’s regional office. Fortunately, our applicant granted as an L1 which means Lowest 1 to secure the tender and awarded to initiate the project. Now we are in a process to issue a Performance guarantee and advance payment guarantee via SWIFT mode after the negotiation between the client and the beneficiary.  

Our Views: 

Usually, Participants either Small, Medium or large businesses routinely required the line of credit not only as working capital or loan, most importantly to fulfill the trade bargains. We support and work along with the clients who need a credit line for letters of credit or bank guarantees. 

To get or to renew a consistent line of credit you must acquire an asset nor securities to pledge with the banks or financial institutions, but many businesses suffer to stay afloat with the per diem basis of profit cash flow or borrowed debt which increases their liability and threaten the growth stage, So we started our trade financial service to help the companies by learning the peoples situation and support them expand their ambitions.