NNRV Trade Partners
Montreal HQ • Global Desks • Trade & Project Finance
Performance Bonds (URDG 758) — On-Demand Security for Projects & Procurement
We structure and place Performance Bonds / PBGs with top-tier and specialty banks, aligned to URDG 758 and your contract. This page covers how PBGs work, 15 application examples, a network of 40+ issuing/confirming banks with SWIFT codes, 10 reviews, and 15 FAQs.
URDG 758 • ISP98 (on-demand)
KYC/AML & Sanctions
24–48h intake
100+ countries
How Does a Performance Bond Work?
- Request: The project owner requires a PBG as part of the contract.
- Issuance: The contractor obtains the bond from a bank/financial institution.
- Execution: The contractor performs the works per contract.
- Default: If obligations aren’t met, the owner files a complying demand.
- Compensation: The bank pays the owner in line with the bond terms.
Key Features
- Guarantees contractual fulfillment
- Protects project owners; boosts contractor credibility
- Typical amount: 10%–100% of contract value
- Valid through project + defects/warranty period
- Complies with ICC URDG 758 (on-demand)
Who Needs a PBG?
- Construction & Infrastructure companies (EPC, PPP)
- Procurement & supply chain operators
- Government contractors & bidders
- Engineering & manufacturing firms
- IT & technology service providers
- Oil & Gas / Energy EPC contractors
Required Documents
- Project contract / tender award
- Company trade license & articles of association
- Board resolution authorizing the guarantee
- Audited financials (2 years) + bank statements (6–12 months)
- Bond application form; bid/tender docs (if applicable)
15 Application Examples (Where Performance Bonds De-Risk Execution)
1) Highways & Bridges (EPC/PPP)
On-demand bond secures delivery milestones; step-down after section handover.
2) Power Plants & Substations
Covers grid-code compliance and COD; aligned with liquidated damages clauses.
3) Solar & Wind Farms
Protects performance KPIs (PR/availability); warranty tail included.
4) Oil & Gas (Onshore/Offshore)
Secures drilling, pipeline, or FPSO deliverables; multi-currency possible.
5) Water / Desalination / Wastewater
Covers capacity, quality specs, and commissioning deadlines.
6) Rail / Metro / Rolling Stock
Phased reductions on prototype acceptance and fleet deliveries.
7) Airports & Seaports
Bonds tied to critical path (runways, terminals, cranes).
8) Hospitals & Education Campuses
Public procurement alignment; independent engineer certification.
9) Data Centers & Telecom Towers
Uptime/latency SLAs built into draw conditions.
10) Mining & Mineral Processing
Covers plant throughput & recovery rates; environmental covenants.
11) Large Warehousing & Logistics Parks
Phased PBG across shells, MEP, automation fit-out.
12) Manufacturing Lines (OEM/Turnkey)
Factory acceptance → site acceptance → performance test sequence.
13) IT / Software Transformation
Milestone-based PBG tied to deliverables, go-live, and stabilization.
14) Defense & Public Safety Equipment
Strict specs; escrow + PBG combo reduces dispute risk.
15) Real Estate (Design-Build)
Performance + defects-liability coverage until completion/hand-over.
Issuing & Confirming Banks (40+)
Illustrative network; final placement depends on corridor, ticket, and KYC. Click any SWIFT to copy.
| Bank | Country/Region | SWIFT | Instruments | Notes |
|---|---|---|---|---|
| HSBC | Hong Kong / Global | HSBCHKHHXXX | PBG, SBLC, LC | Fast SWIFT; strict compliance |
| BNP Paribas | France / EU | BNPAFRPP | PBG, SBLC, LC | EU–global corridors |
| Mashreq Bank | UAE / MENA | BOMLAEAD | PBG, SBLC, LC | MENA projects |
| Standard Chartered | UAE / Asia / Africa | SCBLAEAD | PBG, SBLC, LC | Emerging markets |
| Bank of China (HK) | Hong Kong / Asia | BKCHHKHHXXX | PBG, SBLC, LC | APAC trade |
| UOB | Singapore / APAC | UOVBSGSG | PBG, SBLC, LC | ASEAN focus |
| Crédit Agricole CIB | France / Global | AGRIFRPP | PBG, SBLC, LC | Structured trade |
| JPMorgan Chase | USA / Global | CHASUS33 | PBG, SBLC, LC | Large cross-border |
| Bank of New York Mellon | USA / Global | IRVTUS3N | PBG, SBLC, LC | Agency & custody |
| Citibank | USA / Global | CITIUS33 | PBG, SBLC, LC | Multinationals |
| Deutsche Bank | Germany / Global | DEUTDEFF | PBG, SBLC, LC | Industrial & infra |
| Commerzbank | Germany / EU | COBADEFF | PBG, SBLC, LC | EU SMEs |
| Barclays | UK / EU | BARCGB22 | PBG, SBLC, LC | UK corridors |
| NatWest | UK | NWBKGB2L | PBG, SBLC, LC | Corporate banking |
| Société Générale | France / Africa | SOGEFRPP | PBG, SBLC, LC | Africa networks |
| UniCredit | Italy / EU | UNCRITMM | PBG, SBLC, LC | CEE corridors |
| Intesa Sanpaolo | Italy / EU | BCITITMM | PBG, SBLC, LC | Industrial clusters |
| UBS | Switzerland / Global | UBSWCHZH80A | PBG, SBLC, LC | Tier-1 acceptance |
| ING | Netherlands / EU | INGBNL2A | PBG, SBLC, LC | Trade & commodity |
| Rabobank | Netherlands / EU | RABONL2U | PBG, SBLC, LC | Agri/food chains |
| Santander | Spain / Global | BSCHESMM | PBG, SBLC, LC | Iberia/LatAm |
| BBVA | Spain / Global | BBVAESMM | PBG, SBLC, LC | LatAm reach |
| Nordea | Nordics / EU | NDEAFIHH | PBG, SBLC, LC | Northern Europe |
| SEB | Sweden / Baltics | ESSESESS | PBG, SBLC, LC | Baltic trade |
| Swedbank | Sweden / Baltics | SWEDSESS | PBG, SBLC, LC | Nordic supply |
| KBC | Belgium / EU | KREDBEBB | PBG, SBLC, LC | Benelux SMEs |
| MUFG | Japan / Global | BOTKJPJT | PBG, SBLC, LC | Consortiums & PPP |
| SMBC | Japan / Global | SMBCJPJT | PBG, SBLC, LC | Equipment/infra |
| Mizuho | Japan / Global | MHCBJPJT | PBG, SBLC, LC | Capital call cover |
| ANZ | Australia / NZ | ANZBAU3M | PBG, SBLC, LC | Resources & ports |
| Commonwealth Bank | Australia | CTBAAU2S | PBG, SBLC, LC | Property/infra |
| Westpac | Australia | WPACAU2S | PBG, SBLC, LC | National coverage |
| Emirates NBD | UAE / MENA | EBILAEAD | PBG, SBLC, LC | GCC corridors |
| First Abu Dhabi (FAB) | UAE / Global | NBADAEAA | PBG, SBLC, LC | Oil & gas |
| Qatar National Bank (QNB) | Qatar / MENA | QNBAQAQA | PBG, SBLC, LC | Energy/logistics |
| Standard Bank | South Africa | SBZAZAJJ | PBG, SBLC, LC | African projects |
| Nedbank | South Africa | NEDSZAJJ | PBG, SBLC, LC | Mining/infra |
| Absa | South Africa | ABSAZAJJ | PBG, SBLC, LC | PPP & concessions |
| ICBC | China / Global | ICBKCNBJ | PBG, SBLC, LC | Industrial/energy |
| Bank of Communications | China | COMMCNSH | PBG, SBLC, LC | Manufacturing |
| Bank of America | USA / Global | BOFAUS3N | PBG, SBLC, LC | Corporate deals |
| Royal Bank of Canada | Canada | ROYCCAT2 | PBG, SBLC, LC | North America |
| TD Bank | Canada | TDOMCATTTOR | PBG, SBLC, LC | Cross-border |
| Bank of Montreal (BMO) | Canada | BOFMCAM2 | PBG, SBLC, LC | Commercial |
| CIBC | Canada | CIBCCATT | PBG, SBLC, LC | Corporate |
| Scotiabank | Canada / LatAm | NOSCCATT | PBG, SBLC, LC | Ibero-Americas |
| CaixaBank | Spain / EU | CAIXESBB | PBG, SBLC, LC | Exporters |
| Itaú Unibanco | Brazil / LatAm | ITAUBRSP | PBG, SBLC, LC | LatAm infra |
| Banco do Brasil | Brazil | BRASBRRJ | PBG, SBLC, LC | Public works |
| PG Asia Investment Bank Ltd | Malaysia | AINEMY22 | PBG, SBLC, LC | APAC agility |
| Dushanbe City Bank | Tajikistan | LCMDTJ22 | PBG, SBLC, LC | Flexible jurisdiction |
| Standard Commerce Bank Ltd | USA | STDMDMDMXXX | PBG, SBLC, LC | Private structuring |
| Asia Pacific Investment Bank | Malaysia | ASPMMYKL | PBG, SBLC, LC | Confirmations possible |
| Digital Commercial Bank | USA | — | PBG, SBLC | SWIFT pending |
| Credit Foncier IM UND Export GmbH | Germany | CFEGDE82 | PBG, SBLC, LC | EU-regulated niche |
| Sapelle Int’l Bank Liberia Ltd | Liberia | GNERLRLM | PBG, SBLC, LC | Frontier markets |
| Unibanque | United Kingdom | UNBQGB22 | PBG, SBLC, LC | SME-friendly |
| Al-Amanah Islamic Investment Bank | Philippines | AIIPPHM1XXX | PBG, Islamic SBLC | Sharia-compliant |
| Point Bank | United Kingdom | POITGB21 | PBG, SBLC | Agile issuance |
| Ace Investment Bank Limited | Malaysia | AIBMMYKL | PBG, SBLC, LC | Short-term deals |
| Tabarak Investment Capital Ltd | UAE | TIBIAEADXXX | PBG, SBLC | MENA projects |
| United Bank for Investment | Iraq | UNTVIQBAXXX | PBG, SBLC | Regional trade |
| Golden Touch Investment Bank | Malta | GTIVMT2LXXX | PBG, SBLC | Private mandates |
We also coordinate with accredited brokers (e.g., Barcelona Capital Inc. among several partners) where corridor fit exists.
Secure Intake — Owners / Contractors
Client Reviews (10)
A. Morgan — EPC Roads ★★★★★
“URDG wording was flawless; bank accepted first pass.”
N. Haddad — Ports JV ★★★★★
“Phased reductions matched handover milestones neatly.”
S. Kim — Datacenter ★★★★★
“Tight SLA. PBG issued inside a week post-KYC.”
O. Mensah — Mining ★★★★★
“Africa corridor know-how saved us weeks.”
C. Rossi — Metro Rail ★★★★☆
“Amendment via MT707 turned overnight. Smooth.”
L. Alvarez — Solar IPP ★★★★★
“Warranty tail handled; insurer aligned. Excellent.”
T. Singh — OEM Lines ★★★★★
“Factory→site test sequence fully reflected.”
J. Wang — Logistics Park ★★★★★
“Bank selection matched our lease-up risk.”
F. Diallo — Water PPP ★★★★★
“Independent engineer certificates embedded in draws.”
R. Thomas — Airport Works ★★★★★
“On-demand text minimized dispute avenues.”
Frequently Asked Questions (15)
1) What rule set governs performance bonds?
On-demand guarantees follow URDG 758; some beneficiaries accept ISP98 if SBLC form is preferred.
2) Typical bond amount?
Often 10%–20% of contract value; complex/long-tenor projects can require up to 100%.
3) How do owners claim?
Documentary demand per bond terms (e.g., statement of default, engineer’s certificate). Banks pay on documents, not merit.
4) Can bonds step-down?
Yes—tie reductions to milestones, substantial completion, or end of defects period.
5) Currency options?
USD/EUR/GBP most liquid; local currencies considered with FX arrangements.
6) Issuance timeline?
Straightforward files: draft agreement in 2–4 days post-KYC; issuance soon after text alignment.
7) Is a counter-guarantee needed?
Sometimes: local beneficiary bank may require a counter-guarantee from a foreign issuer’s bank.
8) What’s the difference vs. bank guarantee or SBLC?
All are demand instruments; PBG secures performance, APG secures advances, SBLC is a standby form under ISP98.
9) Can I replace a corporate guarantee with a PBG later?
Yes—owner consent + new instrument issuance; then release corporate guarantee.
10) Are insurers involved?
Trade credit insurers may wrap risk; terms depend on project/corridor.
11) Are PBGs transferable?
Generally no; but assignment of proceeds/novation of contract may be structured with consent.
12) What if the owner is state-owned?
Extra compliance and sovereign clauses; allow more time for approvals.
13) Can SMEs access PBGs?
Yes via specialty/boutique banks and via confirmations; collateral/escrow may be needed.
14) What are typical costs?
Indicatively 0.8%–4.0% p.a. of the bond amount plus confirmation where applicable.
15) Do you support amendments?
Yes—via SWIFT MT707 (or equivalent) for expiry/amount/text changes, subject to approvals.
Compliance & Standards
All mandates undergo KYC/AML & sanctions screening. Instruments align to URDG 758 (on-demand guarantees) or ISP98 (standby letters). We may decline engagements that present elevated compliance or reputational risk.
URDG 758 • ISP98
ISBP 745
Sanctions & PEP checks