Bank Guarantee

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Bank Guarantee

Have ICB as your Guarantor

The Bank Guarantee (BG) is a written undertaking issued by ICB at a customer’s request in favour of a third party (the beneficiary) guaranteeing payment in case customer fails or defaults his obligations. We at ICB can support your business by providing performance bonds or financial guarantees to your beneficiaries. Such guarantees, being part of contracts for exporting goods and services may be used to guarantee a contractor’s / builder’s obligation in the construction industry.

  • The Bank acts as guarantor and will pay an agreed sum if the customer fails or defaults in fulfilling his obligations under the BG

  • There are two types of bank guarantees i.e.  Financial and Non-Financial Bank Guarantees (BG):-


    – Financial Guarantees are defined as guarantees issued by the Bank for its customers, favoring a third party under which the Bank agrees to pay the third party if the customer is unable to pay the amount due to the third party.

    – Non-Financial Guarantees are broadly classified as performance bond guarantees. Such guarantees are those issued by the Bank for its customers favoring a third party, under which the Bank agrees to indemnify the third party should the customer fail to perform in accordance with the terms and conditions of the specific contract entered into.

  • All BGs issued must be specific as to the amount and period of liability including claim period.

  • Strong Financial Standing – Reflects your capability to carry out your payment obligations

  • A written undertaking issued by the bank at your request in favour of a third party (the beneficiary), guaranteeing payment in case of default or non-performance of a certain requirement

  • Negotiation Power – Allows you to negotiate favorable trade terms with your counterpart

  • Issued in a timely manner and acts as a formal and trustable source of undertaking that supports business needs

  • Please refer to ICB Tariff Guide for fees and charges related to this product

  • Tanzanian citizens only, aged between 18 to 60 years old

  • Sole Proprietorship

  • Partnership

  • Limited liability companies duly incorporated