Letter of Guarantee refers to the fee business that our bank offers to the beneficiary according to your company’s application to provide guarantee for your obligation performance in form of L/G. By issuing a Letter of Guarantee, our bank will provide you credit support and assist you to implement various trade activities smoothly. Meanwhile, the L/Gs our bank offers have lots of varieties and can be used extensively, which should satisfy your needs for diversified credit enhancement.

Varieties of L/G
Our bank offers various L/G services：
Financing Guarantee: Refers to undertaking the guarantee bearing obligations for your financing activities, which includes lending guarantee, overdraft guarantee, leasing guarantee and compensation trade guarantee.
Non- Financing Guarantee: Refers to undertaking the guarantee bearing obligations with certain percentage or limit for non-financing activities, which includes tender guarantee, performance guarantee, advance payment guarantee, payment guarantee, quality/maintenance guarantee and retention guarantee.

Qualifications for Issuing L/G
Financial status: the applicant should be in healthy financial status, and possess contract performance and debt repayment ability. If it is foreign exchange guarantee, correspondent foreign exchange income is required.
Validity：The project applying for issuing L/G should comply with the relevant regulations of the country and with good economic benefit. The form and content of the contract associated with the L/G should comply with the law and regulations of the country. The repayment conditions should be clear and reasonable.
Documents and information：The applicant should provide us complete and valid documents regarding the applicant and the related project.
Counter-guarantee：The applicant should provide us sufficient counter-guarantee. The counter-guarantee includes four means: guaranteed deposit, guarantee, mortgage and pledge.
Account opening requirement：The applicant should open an RMB and Forex settlement account. Any fund settlement should be processed through our bank. The applicant of financing guarantee should open a special account, which has to be supervised by our bank according to the agreement.
Constant surveillance：Within the guarantee period, the applicant should accept our bank’s surveillance and inspection, and provide us the status and reports regarding the production, operation and financial activities related to the project on schedule.
Charges to pay：The applicant should pay the guarantee fee and other charges according to our bank’s requirement.

Application Procedure
If you need to apply the L/G, please provide the relevant documents required by our bank, such as principal’s qualification documents, valid certificates, enterprise’s financial reports, other relevant documents related to the guarantee, L/G sample in compliance with our bank’s requirement. You also have to complete the “Application of L/G”, and apply through all levels of branches and operation departments of our bank.