Letters of Guarantee (LGs)

A Letters of Guarantee is a guarantee issued by the bank based on the requester in favor of a beneficiary party to guarantee certain object with a specified amount ( for example: a tender in favor of the Department of Electricity).


The branch requirements:

The customer is requested to:

  • Submit an Application
  • Submit a copy of the tender
  • Sign the form of LG issuance
  • Sign the contract of LG issuance
  • Open a bank account
  • Submission to the documents o the LG presenter and submitting the company’s credentials , if the later is a company
Credit Department Requirements:

Input is inserted to the Bank’s system after obtaining the approval of the Authorized Director, then the branch shall prepare the LG and will be duly signed and by Credit Dept.


  • Branch responsibility is to follow up the customer and keep him informed 20 – 30 days prior to the LG expiry date.
  • The Bank will either renew the period of LG or cancel it by virtue of an official letter from the beneficiary only.

Letters of Credit (LC)

A Letter of Credit: it is a letter issued by a bank to another bank to serve as a guarantee for payments made to a specified party under specified conditions.

Branch Requirement :

The customer is requested to:

  • Open a bank account
  • Submit LC order
  • Submit IDs copy of the applicant and copy of documents of the establishment (if the L / C establisher is a company).
  • Documents have to include the submission a Performa Invoice (P/I), ie.:
    The supplier has to submit a P/I that will indicate his name & address as well as his banking information, type of goods, quantity and specifications, method of shipment, mode of payment.
  • Information shall be clearly provided:
    - Effective date of shipment (as agreed, for example, 3 months)
    - Effective date of L/C implementation( for the aim of completing the documents of shipment)
    – Submitting a copy of the contract held between the importer and the supplier .
  • Adding guarantees on other Customer is allowed
    Examples:
    - If a customer submits cash guarantees at 100%, there will be no need to get more guarantees.
    - If a customer submits cash guarantees at 20%, for instance, then he has to submit guarantees equal to the remained value represented by pledging a property after obtaining the approval of the credit committee.

Credit Department requirement :

The bank will open the L/C after making a case study, getting the approval of the Authorized Director and contacting the correspondent bank.