Bank Guarantees

The Trade Finance Section of Ghazanfar Bank plays an important role in facilitating domestic and international trade by providing reliable, secure, and Shariah-compliant banking solutions to businesses, contractors, suppliers, importers, exporters, and other commercial entities operating in Afghanistan.

Ghazanfar Bank offers a range of trade finance products, including Bank Guarantees and Letters of Credit designed to strengthen commercial relationships and provide financial assurance to counterparties, while strictly adhering to relevant sharia principals.

Ghazanfar Bank issues Shariah-compliant bid guarantees based on Kafala (guarantee) and Wakalah (agency), subject to applicable Shariah principles and approved contractual arrangements. Accordingly, a Bid Guarantee is issued by Ghazanfar Bank on behalf of businesses participating in government, private-sector, or international procurement tenders. It provides financial assurance to the project owner that the bidder will honor its submitted offer, sign the contract if awarded, and fulfill the relevant tender requirements. Ghazanfar Bank issues bid guarantees on flexible and competitive terms based on Sharia compliant principles.

Ghazanfar Bank issues Shariah-compliant performance guarantees based on Kafala (guarantee) and Wakalah (agency), subject to applicable Shariah principles and approved contractual arrangements. A Performance Guarantee provides financial assurance to a project owner or beneficiary that a contractor, supplier, or service provider will fulfill its contractual obligations according to agreed terms and specifications. Ghazanfar Bank issues these guarantees to support construction, infrastructure, procurement, and commercial projects across Afghanistan and overseas. Performance guarantees are issued by Ghazanfar Bank on flexible and competitive terms based on Sharia compliant principles.

Ghazanfar Bank issues Shariah-compliant advance payment guarantees based on Kafala (guarantee) and Wakalah (agency), subject to applicable Shariah principles and approved contractual arrangements. An Advance Payment Guarantee is issued by Ghazanfar Bank to secure advance payments made by project owners or purchasers to contractors and suppliers. It assures the beneficiary that the advance payment can be recovered if the recipient fails to fulfill the obligations covered by the guarantee. This instrument facilitates project mobilization, procurement of materials, and commencement of contractual activities while protecting the beneficiary's financial interests. Advance Payment Guarantees are issued on flexible and competitive terms based on Sharia compliant principles by Ghazanfar Bank.

Ghazanfar Bank issues Shariah-compliant retention guarantees based on Kafala (guarantee) and Wakalah (agency), subject to applicable Shariah principles and approved contractual arrangements. A Retention Guarantee enables contractors and suppliers to receive funds that would otherwise be withheld by project owners as retention money under a contract. Ghazanfar Bank provides this guarantee as financial security for the contractor's outstanding obligations, including the correction of defects or completion of remaining works during the agreed period. This arrangement improves contractors' cash flow while maintaining financial protection for project owners. As for the types of guarantees, this guarantee to is issued by Ghazanfar Bank at flexible and competitive sharia compliant terms.

Ghazanfar Bank issues Shariah-compliant counter guarantees based on Kafala (guarantee) and Wakalah (agency), subject to applicable Shariah principles and approved contractual arrangements. A Counter Guarantee is issued by Ghazanfar Bank in favor of another bank, typically located outside Afghanistan, to facilitate the issuance of a local Bank Guarantee for an Afghan business undertaking an international transaction. It assures the foreign issuing bank of reimbursement in accordance with the Counter Guarantee's terms. This instrument supports Afghan businesses in accessing international trade and procurement opportunities, subject to correspondent banking arrangements and applicable regulatory and sharia requirements.