Overseas Construction Guarantee provides financing assistance to the provision of bid bonds, performance bonds, advance payment bonds, retention bonds and warranties needed by local manufacturers when subcontracting foreign projects or participating in foreign tenders, or the provision of other guarantee for use in overseas construction projects. The Overseas Construction Guarantee helps manufacturers and engineering firms subcontract overseas constructions and improve their competitiveness.
Applicant
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Local companies or engineering firms
- Joint venture between local companies and foreign governments; provided that share ownership of the local companies shall not be less than 20 percent.
Conditions for Guarantee
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Method of Guarantee: Issuance of letter of guarantee or stand-by L/C
- Guarantee Amount: Full guarantee on the amount of bond as stipulated in the construction contract signed by the applicant. If necessary, the guarantee amount may be determined according to the actual needs of the applicant.
- Guarantee Fee Rate: Based on a case-by-case basis depending on the guarantee amount, guarantee period, and customer credit.
- Currency: Based on the currency stipulated in the trade agreement.
Security
The applicant shall provide bank guarantee, collateral or guarantor approved by Eximbank, except for those with Eximbank approbals are not limited.