Bond Guarantee

Under a Bond Guarantee, the exporter can insure

•  a bid bond,
•  an advance payment bond,
•  a performance bond or
•  a maintenance period bond

issued by a bank in favour of a foreign buyer. An exporter can use the Bond Guarantee to cover the risk of unfair calling of the bond (90% coverage) or calling for political reasons (95% coverage).

The Bond Guarantee can be a counter security for a bank issuing a bond on behalf of the exporter in favour of a foreign buyer. If there is a claim, Finnvera recovers from the exporter the full indemnity paid to the bank.

The Bond Guarantee can also be used simultaneously both as a counter guarantee in favour of a bank and as risk insurance in favour of an exporter.

The Bond Guarantee coverage for the bank is decided case by case.

The bond must be limited to its amount and validity period. The bond may be given by either a Finnish or a foreign bank or insurance company. The governing law as well as the agreed arbitration/litigation procedure of the export contract will also be considered.

Attachments
Online Application (open a new web browser)
Application (PDF)

General Conditions, Exporter (PDF)
General Conditions, Bank (PDF)

Brochure (PDF)