Letter of Guarantee

A Letter of guarantee is an undertaking by Al Rajhi Bank on behalf of its customer to pay a certain sum of money to a beneficiary in case of default by the applicant in meeting certain terms and conditions of an agreement and contract. Al Rajhi Bank issues or advises all types of letters of guarantee, which comply with international standard, local regulations and the bank’s principles. 

     

    Letter of Guarantee forms 

    Letters of Guarantee can be in the form of Bank Guarantees, Performance Bonds, Bid Bonds, Shipping Guarantees or Standby Letter of Credit and others .

Enjoy the benefits of our Letter of Guarantee

Ready to apply for your Letter of Guarantee?

  • Transaction Mechanism 

       Al Rajhi Bank issues, advises, amends, extends, and liquidates, all based on customer requests

  • For more enquiries please contact:
      • Corporate Business group

        Central Operation Department

  • Al Rajhi bank - Amman - Jordan
      • Telephone: + 962 6 510 0800

        Fax: + 962 6 566 9911

  • Location: Shmeissani, Abdul Hameed Sharaf Street, building number 67
  • Letters of Guarantee Fees and charges

       

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    Local /Outward Letters of Guarantee
    Letter of Guarantee Issuance / Amendment (Value, Period) (against full cash cover )

     2% annually for full cash cover 

    (minimum 40 JOD)

     Letter of Guarantee Issuance (against part not cash covered) Maximum 800 JOD 
     Letter of Guarantee Amendment (other than value and period)  30 JOD
     Cancellation  25 JOD
     Advising Letters of Guarantee
     Letter of Guarantee Advising & Amendment (increase in amount / extend period)  0.2% (minimum 50 JOD)
     confirming inward gtee commission  40 JOD
     amendment on inward gtee commissions (other)  40 JOD
     Advising gtee to other banks (relay without responsibility)  75 JOD
     Requesting Confiscation / Claim / Call  50 JOD
     return inward gtee after expiry  25 JOD
     Cancellation  25 JOD
     Counter Guarantees
     Counter Guarantee Issuance/Amendment (Value & Period)  2% annually for full cash cover (minimum 40 JOD)
     Counter Guarantee Amendment (other than Value & Period)  50 JOD
     Cancellation  25 JOD

     

     

     

    Frequently Asked Questions:
    Letter of Guarantee
    • How long does it take to process Letter of Guarantee?
      We can process your letter of Guarantee within 24 hours upon receipt of a complete application, subject to the availability of your credit facility.
    • Can I issue in a special text other than the bank-approved texts?
      Yes, we can issue letters of guarantees in special text but it is subject to shariah, legal and risk approvals.
    • How do I cancel shipping Guarantee?
      Please return the original Shipping Guarantee to Al Rajhi Bank for cancellation.