Trade Finance

When tendering to provide goods/services to procuring entities or after award of the contract tendered, we offer our undertaking to the procuring entity on your behalf to cover the risk of non-payment or non-performance.

This is offered through various types of guarantees:

• Tender/Bid Bonds
• Advance Payment Guarantees
• Performance Bonds
• Supply Guarantees
• Customs Bonds
• Warranty/Retention Bonds
• Credit Guarantees
• Shipping Guarantees

Required:

• NBK guarantee application form
• Board Resolution/letter of request
• The format/ wording of the Letter of Guarantee (if applicable)
• An approved Guarantee line of credit/credit appraisal

Turnaround time for processing bid/tender bonds and cash covered guarantees is 1 Hour subject to internal approval of each request.

Cost:

1% flat for Bid Bonds

2% per annum for Other Guarantees

Let us partner with you by issuing Letters of Credit to your local or international supplier thereby guaranteeing payment of the goods supplied so long as all the specific terms of the transaction are met.

Required:

• NBK LC application form
• Proforma Invoice/Sale contract
• Insurance cover or marine cover
• Approval of the LC line of credit or cash equivalent

We offer short term loans by advancing funds against an accepted Bill, invoice or Certificate for the services provided or goods supplied to reputable companies.

For import and export transactions we also offer document handling solution for the goods supplied/imported. This product facilitates payment against documents presented for either against sight or against acceptance.

After importation of capital-intensive assets for your business, we offer you a PIF loan that allows you to make flexible repayment plans that favor your cash flows. This product eases you from the requirement of making a one-off payment for the asset(s) purchased.

Looking to export? Simply provide proof of an order for your products and we will facilitate the financing needed for the shipping of your goods.

We provide short-term credit to optimize your working capital and provide liquidity for your business. This product allows you to get access to funding for valid purchase orders from reputable institutions.

We support Oil Marketing Companies in their stock purchase under the Open Tender System either as tender winner or off-taker.

For other commodities, we support you by providing you with a stock financing facility which is tailor made to allow you to purchase the stock while holding it as collateral under a bank’s appointed collateral manager.

The customer bears the collateral management fees and other incidentary costs.

We offer varied structured solutions tailor-made to suit your unique business needs. This is offered within any business sector i.e. Manufacturing, oil, gas, energy, agribusiness, and telecommunication.

I/We hereby undertake to pay on presentation or to accept on presentation and pay at maturity drafts/documents paid/negotiated or accepted within the validity of the credit and drawn in conformity with the foregoing terms and conditions provided they shall not exceed in the aggregate the sum aforementioned, plus any accrued interest from the date of payment to the beneficiary of each draft to the date of arrival of the return remittance. You are authorized to make such arrangements as may be necessary for providing reimbursement to your Branch or Agent in respect of drafts or documents paid or negotiated under this credit.     

1. I/We hereby undertake to hold you and/or your servants harmless and indemnified against all losses which you or they may suffer by reasons of the inherent risks which may be highlighted to you in regard to the type of  LC format required by ourselves. We further undertake and guarantee payment of bill(s) and or invoices together with all charges in lawful money of the Republic of Kenya which may be represented to us in this connection.                
2. For cash cover, we irrevocably authorize you to debit the above specified account number with the equivalent amount of this letter of credit and to hold this amount as margin against your liability under this indemnity/letter of Credit until such time as the same may be discharged. 
3. I/We further declare that we have read and understood the terms and conditions herein and that the undersigned has the authority to give the declarations, undertakings and instructions as above, on behalf of the Company.            
4. We understand that the credit is subject to Uniform Customs and Practice for Documentary Credit (2007 Revision), International Chamber of Commerce Publication No. 600.

I/We agree that the Documentary Credit issued by you is subject to the Uniform Customs & Practice for Documentary Credits (2007 Revision, International Chamber of Commerce, Publication No. 600) except as otherwise stated herein              

In consideration of your opening of this confirmed/irrevocable Credit with the above terms and conditions, the undersigned unconditionally agree as per conditions overleaf.

We/ I refer to our application for guarantee which may be amended at our request and in

consideration of the Bank issuing a guarantee as requested, We/ I (jointly and severally) for ourselves and our legal/personal representatives successors

and assigns hereby:

a) Agree to keep you indemnified against actions, proceedings, liability claims, losses, damages, costs and expenses in relation to arising out of the said guarantee as extended and/or amended from time to time at your request and to pay you on demand all payments, losses, costs and expenses suffered

or incurred by you in consequence thereof or arising thereof; and

b) Irrevocably authorize you to debit our account with all such payments losses, cost and expenses; and

c) Irrevocably authorize you to make any payments and comply with demands which may be claimed from or made upon you under the said guarantee without any reference to or further authority from us and agree that it shall not be incumbent upon you to enquire whether or not any such payments or demands claimed form or made upon you under the said guarantee is in fact due or whether or not any dispute exists between ourselves and the beneficiary/ies or the said guarantee and further agree that any payment which you shall make in accordance with the said guarantee shall be binding upon us and shall be accepted by us as conclusive evidence that you were liable to make such payments or comply with such demand and further that you may at any time determine the said guarantee.

d) We also agree to pay you on demand any further changes and interest which may arise in the event of any claim being made upon you under the Indemnity Guarantee

e) This general Indemnity covers any subsequent changes which include any extensions/amendments to the Guarantee.