The Performance Bond Insurance Scheme enables the ECIC to work with banks and other financial institutions to increase the capacity of the South African market to issue bond facilities for export contracts. The following types of bonds may be covered: bid bonds, performance bonds, advanced payment bonds, retention bonds, and reclamation bonds.
Cover is structured in two ways. Under a Risk Participation Agreement (RPA), the ECIC insures the bank for a portfolio of bonds issued on behalf of various contractors and exporters, covering up to 50% of the risk on each bond transaction. The maximum tenor of each RPA is five years on a revolving basis.
Under the Facultative Approach, cover is provided to the bank for a specific, individual transaction — either in conjunction with export credit cover or on a stand-alone basis. Under this approach the maximum indemnity for loss is 90% of the bond value.
The risk covered in both approaches is the calling of the bond by the foreign buyer due to the failure of the South African exporter to fulfil contractual obligations, whether due to financial constraints (such as insolvency) or poor or non-performance against contract specifications.
Bond transactions can be denominated in ZAR or USD. Where bond insurance is applied for alongside export credit cover, the normal ECIC South African content requirement applies.
Bond Insurance is available to:
The product is relevant to any South African contractor that issues performance, bid, advance payment, retention, or reclamation bonds in the context of an international export contract.
Risk Participation Agreement (Portfolio):
Facultative Approach (Single Transaction):
Bond Insurance covers the following types of export-related bonds and guarantees:
The insurance covers the calling of any such bond by the foreign buyer due to the South African exporter’s financial constraints (e.g. insolvency) or poor or non-performance against contract specifications.
Risk Participation Agreement (Portfolio) requirements:
Facultative Approach requirements:
Applicants may approach ECIC directly or through their bank. Two cover structures are available:
For enquiries and applications, contact ECIC at info@ecic.co.za or call +27 (0) 12 471 3800.
Before applying for Bond Insurance, you should prepare the following:
Use this checklist to assess whether Bond Insurance is suitable for your transaction:
Applicants must provide: export contract details (value, buyer, destination, term); bond details (type, value, tenor); financial statements of the South African contractor; bank and bond facility structure details; and for RPA applications, a description of the proposed bond portfolio.
Where bond insurance is applied for in conjunction with export credit cover, the standard ECIC South African content requirement applies. Transactions must relate to an export contract between a South African registered company and a foreign buyer.
To apply for ECIC Bond Insurance or to request more information, contact ECIC directly:
Cover is up to 90% of the value of the bond.
The above rates are for South African corporates only. Cover is for non-performance including payment default and insolvency of the Exporter/Contractor.
IMPORTANT:
These results are indicative. Final terms to be confirmed by the fund agency.
Most applications are delayed or declined due to incomplete submissions. Preparing the items below upfront will significantly improve your chances.
Core documents (required for almost all funds)
Project‑specific documents (depending on the fund)
Additional requirements
Timelines vary by fund and depend heavily on the quality and completeness of your application.
Email Address: info@ecic.co.za
Contact Number: 012 471 3800
Portia Dube: 012 471 3800
Use the following tools to help you apply:
