Bond Guarantee requirements and conditions

What does a Bond Guarantee cost?

EKF charges a premium for issuing a Bond Guarantee.

We determine the premium based on:

  • Industry analysis: EKF assesses the situation and the opportunities in your industry.
  • Your buyer's credit rating: EKF assesses your customer's credit rating, i.e. the likelihood that the customer will pay. The higher the credit rating, the lower the premium.
  • The political situation in your buyer's country: EKF assesses the risk of political unrest in your customer's country. The lower the risk of political unrest, the lower the premium.

The price of a one-year guarantee to a customer in Mexico is 0.5 per cent of the risk amount for up-front payment. The customer has the lowest acceptable credit rating, while Mexico is assessed as a relatively attractive country for doing business.

The price of a one-year guarantee to a customer in Albania is 1 per cent of the risk amount for up-front payment. The customer has a higher than average credit rating in Albania. On the other hand, the country has significant political risk.

A Bond Guarantee will also involve costs to your bank. Your bank can give you the total price.

Who is eligible for a Bond Guarantee?

All exporters are eligible for a Bond Guarantee, and no limit applies to the amount covered by the Guarantee.

What is the repayment term of the Bond Guarantee?

The repayment term of the guarantee depends on the agreement between your company and the customer. The repayment term is often longer for a performance bond than for a bid bond or an advance payment bond.


You are responsible for collecting the debt, and must be able to prove that you have a claim against the debtor in order to seek compensation.

What does EKF cover?

EKF pays compensation if you make a loss on an export transaction as a result of commercial or political risk.

  • Commercial risk means that your buyer is unable to pay due to liquidation, insolvency, cancellation of the contract or because the buyer is unwilling to pay.
  • Political risk occurs when you do not receive payment for products due to impediments in the country you are exporting to. Such impediments include war (external armed conflict and domestic political violence), currency shortage, restrictions on use of currency, import or export bans, and interventions by local authorities that make it impossible to receive payment for the products.

EKF generally pays a maximum of 90 per cent of the loss in compensation to your company. As an exporter, you usually have to cover a deductible of at least 10 per cent.

Environmental and social sustainability requirements

When your company's business with EKF totals more than DKK 25 million we assess your company's approach to the environment and human rights.