A Bank Guarantee (BG) is a guarantee issued by a Bank at the request and for account of the Applicant whereby the Bank undertakes to pay the beneficiary up to the guaranteed sum in the event of a valid claim received by the Bank under the BG.

A Bank Guarantee-i (BG-i) is a guarantee issued by a Bank at the request and for account of the Applicant whereby the Bank undertakes to pay the beneficiary up to the guaranteed sum in the event of a valid claim received by the Bank under the BG-i.

This BG-i is based on the Kafalah concept which refers to a contract of guarantee or surety given by one party to discharge the liability of a third party in the case of default.