Carpenter cutting wooden planks
Bond Guarantee

Safely provide bonds for foreign customers

Foreign customers occasionally demand a bond to guarantee that you will deliver the goods or services as agreed. It is a kind of insurance for your customer if anything goes wrong. But unfortunately, foreign customers have also been known to make calls on such bonds, even if you have complied with the conditions. A Bond Guarantee insures you against significant loss if the customer makes an unjustified call on your bond.

What we offer

You can accept orders in markets associated with risk.
You are insured against significant loss on bonds given to foreign customers.
We cover you if the customer misuses your bond.
The Guarantee also applies in connection with political unrest.
You will be backed by the Danish government , making it easier to recover the money.

Requirements for your business

You have a deductible of at least 10 per cent.
You must prove that you have a claim against a customer when seeking compensation.
Your business must be conducted on an environmentally sound and socially responsible basis.
Your company must help to generate economic growth in Denmark.

How a Bond Guarantee works

Through a bank, you have issued a bid bond, an advance payment bond or a performance bond to a foreign customer in connection with an order.

If your customer makes an unfair call on the bond, EKF compensates up to 90 per cent of your loss. The also covers if the authorities in the country prevent you from delivering, or if an international ban on trading with the country is imposed.

This means you can safely accept orders from markets that you would otherwise be unwilling to venture into. Even if you do not know the customer, the risk you are running is small.

A bond larger than their own equity

In 2015, Aarhus-based architectural design firm CEBRA won a commission to design a cultural centre and park in the heart of Abu Dhabi. But to take on the order, worth around DKK 70 million, CEBRA was required to provide the client with a supply bond equivalent to 10 per cent of the contract sum. This was more money than the company had in equity. CEBRA's bank pledged the bond with risk cover from EKF. The bank also recommended a Bond Guarantee to make sure that the owners of the Danish company would sleep soundly at night, even though they had deposited DKK 7 million in an “open” account.

Read their story
The process

How to get a Bond Guarantee

Tømre beskærer træplanker

Your customer demands a bond for your delivery

Your foreign customer is aiming to insure itself against loss if, for some reason, you do not deliver the agreed goods or services. The customer therefore demands a bond, which you provide via a local bank.

Ikon for risiko i EKF's rød og blå farve

You want to ensure that the bond will not be misused

You are concerned that the customer may find a reason to call on the bond, even if you meet your agreement. You therefore contact EKF and ask to be insured against loss through a so-called Bond Guarantee.

Ikon af kreditvurdering i EKF's rød og blå farve

We run a credit rating check on your export transaction

Before we offer you a Bond Guarantee, we have to check the credit rating of your customer, the industry and the situation in the country concerned. This includes a CSR screening, among other things. If the contract value is over DKK 25 million, a more in-depth CSR assessment will be required. You also complete and sign the relevant documents.

Relevant documents for the Bond Guarantee How we work with CSR
Ikon for Købsaftale i EKF's rød og blå farve


If we agree to cover your transaction, we will send an offer detailing the cover, price and conditions.

Tog kun fyldt med containere

And we're done

We then provide the Bond Guarantee and you are insured against significant loss if the customer makes an unfair call on your bond. Now you can focus on delivering the order to your customer.

The small print and relevant documents

Contact an advisor
Chief Underwriter Nicolai C. Frank

Any questions about Bond Guarantee?

If so, call or write to Chief Underwriter Nicolai C. Frank on telephone +45 3546 2695 or e-mail

The Bond Guarantee does not meet your needs?