Bank Guarantee

Advantages

A Bank Guarantee is a document issued by the Bank pursuant to a request from a Customer in favour of another party (the beneficiary of the guarantee) before which the Bank commits to, according to the guarantee's wording, meet certain obligations should the Customer (the debtor who requests the guarantee) fail to meet them in full and on time

A Bank Guarantee can help your company as follows:

• Support to its economic activity:
  Bank guarantees are required for calls for tenders, construction works, leasing agreements, etc.
• Access to better funding conditions:
  The fact that there is a bank guarantee in favour of the debtor may imply access to better funding conditions.
• Guarantee of contract obligations:
  The Bank assures the Company's compliance with its obligations toward third parties.

Costs

Please, consult the pricing in force, available at any Millennium bcp Branch or at www.millenniumbcp.mo here.

Features

A Bank Guarantee is an instrument provided by Millennium bcp to Customers which, within the scope of their activity, need a banking institution to guarantee an obligation assumed by them towards a third party.

A Bank Guarantee can take on the following features:

• Financial Guarantees for purposes of Replacement of Credit - these are meant to guarantee the reimbursement of payments of principal and interest pursuant to a credit obligation - existing or future, already contracted or to be contracted in the future - between the debtor requesting the guarantee and a creditor;
• Financial Guarantees not for purposes of Replacement of Credit - these are meant to guarantee or replace cash liabilities assumed by the Debtor requesting the guarantee, or by a third party, towards the Beneficiary resulting from legal or contractual obligations.
• Technical Guarantees - these are meant to guarantee compliance by the Debtor requesting the guarantee, or by a third party, of technical obligations agreed between the Debtor and the Beneficiary, even if failure to comply will result in a financial obligation for the Bank towards the Beneficiary.

Amount

Subject to case-by-case analysis.

Term

Bank Guarantees and Sureties can be issued:

• Without end date (no term) - when the wording of the Bank Guarantee or Surety does not mention a validity date or for the Bank to be called upon to pay;
• With end date - when the wording of the Bank Guarantee or Surety mentions a validity date. It may also include, or not, provisos on its renewal.

Counter-guarantees

Usually, for providing a guarantee, the Bank requires, as counter-guarantee, the company requesting it to sign a blank Promissory Note accompanied by an aval from the partners and spouses. Other counter-guarantees may be negotiated depending on the credit risk analysis.

The effective granting of the credit operations herein presented depends on the prior appraisal and decision on the credit risk and on the eventual provision of valid collaterals required by the Bank.