Bonds - Cover for exporters

This policy is designed for internationalisation transactions in which Spanish exporters are required to provide bonds, as part of an export contract, to foreign buyers or authorities of the destination country.

It covers the Exporter against the risk of improper enforcement of bonds by the foreign contracting party. It also provides coverage against the risk of enforcement of the guarantee or bond due to the inability to fulfil contractual obligations due to situations of political violence, catastrophic events, Spanish or foreign governmental measures, etc.

Who is the insured party? 

The Insured Party under the policy is the Spanish Exporter issuing the guarantee or bond.

The Exporter can also designate a Financial Institution as the beneficiary of its rights to insurance indemnities since this can facilitate obtaining the guarantee or bank financing.

Commercial risks:

The enforcement of bonds by the beneficiary if it is a private company, provided that the enforcement is improper (i.e., when the Insured Party has fulfilled the obligations guaranteed). 

Political risks:

Improper enforcement of the bond by a public entity. This also includes the inability to fulfil contractual obligations due to events of political violence, catastrophic events, rulings of the Spanish or foreign governments, etc. 

There are no limits (maximum or minimum) on the amount per transaction.

The maximum amount of coverage will be limited by the amount of the Guarantee issued (or pending issuance) by the Insured Bank.

The guarantee to be covered must fulfil the obligations of a Spanish company under an international contract.  

Cesce sets the price according to the individual characteristics of each transaction.

The price is determined by the following elements 

• The risk rating of the export destination country
• The trustworthiness of the beneficiary of the guarantee
• The type of guarantee (advance payment, performance, principal) and its conditionality (conditional vs. first demand)
• The term of the insurance policy
• The technical capacity of the ordering party

Ask Cesce about the conditions and price of the insurance policy when you identify a possible sale and purchase transaction.

You need to send an application, which will be examined and analysed. 

• After receiving an application, Cesce analyses the risk associated with the requested coverage based on the information provided by the Insured Party.​​​​​ 

• The risk analysis focuses on the risk of the destination country of the export transaction, the trustworthiness and creditworthiness of the beneficiary of the guarantee, and the guaranteed obligations and the exporter's technical capacity to fulfil them. 

• The study also examines the possible environmental impact while ensuring at all times that the transaction qualifies for coverage by the State in accordance with current regulations.  

• Once the risk has been analysed, the Company submits a proposal to the decision-making body. If approved, Cesce will issue a proposal of terms and conditions. If the Insured Party accepts the proposal, the coverage will be formalised once the parties have signed the Insurance Policy and the Insured Party has paid the premium.

If you are interested, please fill in and email the application form to cuentadelestado@cesce.es.   

If you have any questions, please call +34 91 193 19 99 or send us your details, and we will contact you.