Page 24 - FIN435 RHB vs BPMB

III. Trade Finance : Bank Guarantee

Bank Guarantee is a financial instrument where the bank guarantees a stated sum of
money to the beneficiary upon non-performance of the applicant's obligation and
performance. RHB Bank will assist in issuing guarantees on your behalf to support
your business activities. Guarantees include bid, tender, performance, advance
payment, customs, utilities and security deposit guarantees. Bank guarantees in
nature are separate transactions from the contracts they relate to.
Benefits
• RHB Bank provides an undertaking on your behalf, and provides comfort and
assurance to your business counterpart
• RHB Bank assists in reviewing the content of your guarantee before issuance,
thereby protecting your interest
• Facilitates transactions between contracting parties to extend your reach
beyond local boundaries

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