Commercial Bonds & Financial Guarantees

A commercial bond is different from a surety bond in that it satisfies a financial guarantee rather than a performance related guarantee requirement.

Commercial bonds range from simple lease deposit bonds to the more complicated Credit Swap Bonds whereby a rated S&P issuer is prepared to lend its rating to a non rated entity for the purposes of guaranteeing a contract requirement. By way of example Credit Swap Bonds can be used to provide financial guarantees on infrastructure projects, shipping charter guarantees and rail access agreements.

They are beneficial to the client in that they are provided either on an unsecured or ranked security basis whilst remaining cost competitive with a more traditional bank facility.

These are very much a bespoke product so please contact Mark Coulson directly to discuss your requirement.