Bank Guarantees

Guarantees are issued as assurance of payment or performance. It falls under the category Lending as similar requirements apply. A guarantee line allows you a pre-set limit within which you may request multiple guarantees. 


  • Avoid advance payments 
  • Enhance your reputation
  • Qualify for bidding on large projects 

Letters of Intent (LOI) for Bank Guarantees

An LOI is the precursor to a Guarantee or Bond and is usually requested in the early stages of bidding. Once a bid has been won, the Bank Guarantee must be issued.

Purposes: Long lease property acquisition – construction or other bidding. 

Bank guarantees can be in various formats usually defined by your counter party, and can bear different titles depending on the purpose.

Bank Guarantees

To guarantee payment to the Tax Authorities or in case of other litigation, to avoid or lift embargoes in connection with tax and legal claims, also to obtain long lease land, to guarantee a minimum usage of power to a utility company, etc.

Performance Bonds

To guarantee compliance with a construction contract

Bid Bonds or Tender Guarantees

To guarantee seriousness and compliance with obligations in connection with large construction projects or large product or service delivery contracts

  • To confirm your capability to meet your contractual obligations to a third party
  • To avoid down payments or advance payments
  • To qualify for recurring bidding on large projects
  • A line to facilitate various guarantees for different projects

Once a letter of intent to provide any of the above types of guarantees or a bank guarantee has been directly issued, the bank has committed itself to pay out in case of a claim from the beneficiary.  As such it is considered a credit instrument and the same requirements apply as with loans and overdraft facilities.
Your Account Manager will explain what documents to submit in your specific case.

Please see below a checklist of the most common documents:

  • Bank references certifying good credit standing and reputation
  • Recent financial statements
  • Cash flow projections per project phase
  • An investment budget
  • Fair own contribution to equity
  • Copy of construction offers
  • Appraisal reports of real estate properties to be provided as collateral
  • A valuation report of furniture, fixture, equipment, machines or vehicles to be provided as collateral
  • A recent list of stock
  • A recent list of accounts receivable
  • Other as per checklist under tab ‘General”*

*depending on which is applicable in your specific case.

Sales & Customer Support

Account and service information are just a phone call away.
During business hours (8:00am to 4:30pm AST):
Aruba Bank Contact Center: (+297) 527-7777
For questions regarding the product features and to apply, please call:
Aruba Bank Corporate Account Manager: (+297) 527-7774

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Contact our Contact Center during office hours and extended hours at (297)527 7777.

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