Guarantees

A guarantee is issued by Citibank Pakistan (Guarantor) on behalf and on request of customer (applicant) in favor of a third party (beneficiary), for the fulfillment of certain defined obligations by the applicant.

Usually Citibank issues the following types of guarantees:

Tender Guarantees (Bid bonds): Some tenders require the bidders (Citibank customers) to furnish bank guarantees to prevent the bidder from withdrawal from the bid / contract if successful in the tender.

Performance Guarantees: A performance guarantee, by Citibank on behalf of its customers, assures the beneficiary of delivery of goods and services in accordance with the terms and conditions of the contract.

Advance Payment Guarantees: Citibank will guarantee that the advance payment by the beneficiary to Citibank's customers will be utilized for performance of the contract for which the cash was advanced.

Financial Guarantees: Any guarantee provided by Citibank on behalf of the customer for any financial requirements or deals can be broadly classified as financial guarantee.

Open ended Guarantees: These guarantees do not have an expiry date and a standard liability clause and return clause (SLC&RC).

Back-to-Back Guarantees: A guarantee issued by Citibank Pakistan in favor of a beneficiary based on a primary guarantee (counter guarantee) issued in favor of Citibank by an overseas branch of Citibank or any other bank, on behalf of their customer / applicant.