The Guarantees that are issued under these types of facilities are worded specifically to secure credit lines. Guarantees are issued under URDG protocols (currently URDG758) and are readily accepted by most mainstream banks. They are referred to as a ‘letter of Guarantee’, or ‘credit facilities Guarantee’ Correctly, they are called ‘Demand Guarantees’. It is important to recognise that by using a Guarantee to secure a line of credit or loan, interest charges will apply in addition to the normal Contract Fee. From our experience, international bank lending rates for loans secured against such high-quality security tend to be in the region of 03,00% to 04,00% annually. This will of course differ in certain jurisdictions and currencies. We can facilitate lending in Suisse Francs, Euro, and GB Sterling that are linked to either EURIBOR or LIBOR rates and also in several other local currencies. These facilities suit financial requirements for terms under 5 years or where returns are high, allowing higher expenditure on annual rates. The longer the term, the less suited Collateral Transfer facilities are and therefore we discourage terms in excess of 5 to 7 years, although they are achievable.


Bank Guarantees issued with the assistance of BRICS Project Finance

BRICS Project Finance can assist its clients in raising credit against Guarantees of this type in the event that our clients are unable to get lending facilities from their Banks. We hold strong relationships with reputable banks and private equity groups holding an appetite to expand lending opportunities in this area. It should be noted however that additional fees will apply if you utilise our services to obtain credit lines. BRICS Project Finance can also open banking and lending facilities for its selected clients by direct introduction to our willing banks.