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  • Benefits
  • Related Costs
  • Features
  • How to apply
  • Further subjects

Bank Guarantee is a document issued by the Bank, at Customer's request, having a third party as beneficiary. In the document the Bank undertakes a specific obligation towards the third party, in the event of the Customer failing to match/performed in the conditions agreed between the Customer and the third party.

the Bank Guarantee enable the companies to reach the following benefits:

 In obligations from agreements

The Bank secures that the Company will perform its obligations as established in the base agreement.

 Accessing better financial conditions:

The existence of a Bank  Guarantee, covering the Company risks, may allow the later to access financing at a better pricing.

Fees and Commissions

 Issuance

The issuance of a Bank Guarante is charged with a organization fee and a quarterly fee (or proporcional part of a quarter), during the term of the guarantee.

 Modifications

Extension or raise of the guarantee is charged with the corresponding fee, plus administrative expenses.

All costs related to the Bank Guarantee are mentioned in the Bank's Price Schedule available online and at any of the Bank's Branch.

Types of Bank Guarantees

 Financial to replace credit

They work as collaterals to normal financing transactions between a debtor and a creditor;

 Financial not replacing credit

The goal is to secure repayments or other financial obligations steaming out of agreement;

 Technical

The goal is to secure that the covered party is able to performed in the technical terms defined in an agreement with a third partyy.

Amount

Defined on a case by case basis.

Expiration or Validity

Bank Guarantees can be:

 Without expiration

When, in the text of the Guarantee, no expiration date is mentioned;

 With defined expiration

When, in the text of the Guarantee, an expiration term is clearly mentioned, with or without a renewal clause.

To apply for a Bank Guarantee, please use one of the following way:

  • ​Visit your Millennium bim Branch or contact your Relationship Manager and ask for a simulation, or;
  • Call our Customer Line at:
  • +258 21 35 00 35

    +258 82 35 00 350

    +258 84 35 00 350

    +258 86 35 00 350

    Cancellation

    The cancellation of the Guarantee must be done before the expiration of it, with full performance of the obligations mentioned.

    Collaterals

    Useally, a bill of exchange is request as a collateral. However, other collaterals might be required, on a case by case basis, depending upon the creditworthines analysis done by the Bank.