GovWire

As a condition of some export contracts, a UK bank may be required to issue a bond on behalf of a UK exporter to an overseas buyer. The bank may also issue a counter-guarantee to a bank in the buyers country.

Our Bond Insurance Policy protects UK exporters against demands for payment under a bond or a counter-guarantee that is either unfair or caused by political events.

Benefits

Exporters taking out a bond insurance policy receive:

• up to 100% cover
• protection against losses suffered because of unfair calls on the bond or counter-guarantee
• protection against losses suffered because of fair calls caused by certain political events

Eligibility criteria

The transaction must satisfy UKEFs eligibility criteria, which includes, among others, the requirements that:

• the exporter must be carrying on business in the UK
• the buyer must be in a country outside the UK
• the bond must not be given for contract payments that are aid-funded by the UK government

All transactions supported by UKEF must satisfy:

• our foreign content policy
• our anti-bribery and corruption and environmental, social and human rights due diligence processes

The transaction may not be supported if there are sanctions imposed on the country of the overseas buyer.

The main types of bonds we are asked to cover are advance payment bonds and performance bonds. We can also consider providing cover for reducing bonds, which are bonds under which the amount payable reduces over time or as goods or services are delivered.

How to apply

To find out more about our Bond Insurance Policy or to discuss eligibility for our support, contact our customer services team. Contact customer.service@ukexportfinance.gov.uk or call +44 (0)20 7271 8010.

Our proposal form and product documentation are also available if youre ready to submit a proposal.

Proposal form and product documentation

Specimen policies to assess whether our bond insurance policy is suitable for the contract.

• specimen Bond Insurance Policy issued by a UK bank (ODT, 50.8 KB)
• specimen Bond Insurance Policy issued by an overseas bank (ODT, 51.6 KB)

Submit a proposal.

• Bond Insurance Policy proposal form. (PDF, 562 KB, 26 pages)

More information

• Read our guide for applicants on business processes and factors, to find out how we make decisions on applications
• Read our position on Financial Crime Compliance