Home > Term: bid bond
bid bond
Also: tender bond, tender guarantee, bid guarantee. Guarantee common in export financing and intended to prevent companies from tendering a bid and subsequently rejecting the mandate received because the transaction has in the meantime become unattractive, for example. This enables the buyer to protect himself against the tendering of dubious or unqualified bids. Bid bonds are often required for public tenders.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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Creator
- Stefan K
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