This guarantee is a 100% irrevocable MLT commitment that is issued with the purpose of facilitating financing or risk hedging of investment projects inside Iran which generate a strong capacity for the export of goods and services, once the project is completed and starts the production. Such a guarantee can be issued in favor of domestic financing banks or other overseas or domestic beneficiaries of a project with full export capacity from Iran with a credit period of more than two years which covers the repayment of the principal plus interest of the export / investment facility for the domestic financing bank  or other overseas beneficiaries and suppliers.

This kind of guarantee has newly been added to the Fund’s product pool as the management believed that one of the fund's new strategies for supporting export-oriented production as a driving engine of the economy and creating sustainable employment. Such a strategy was innovated to support new and developmental projects with full export potential and advantage. 
There are new projects which lead to the attraction of finance or foreign investments in Iran and have the share of Iranian bank financing for the Iranian content of the project. In fact, relying on the guarantee issued by the Fund, the domestic financing bank will ensure the return of the principal plus interest of the medium and long-term facilities granted to the project in proportion to its progress, and a suitable margin of safety for financing export-oriented projects is created. Such a guarantee could be issued in favor of a foreign supplier or investor under some special circumstances. 

Who could apply?
Investors and financing banks (either domestic or overseas) who are going to invest in an export-oriented project inside Iran which enjoys an export capacity of more than 50% of its final products or other beneficiaries who act as the suppliers of machinery and  industrial tools of such projects with a medium and long term tenor.

Risks under cover:
1-    Non-repayment of the installments by the Iranian borrower who has received the credit facilities for the domestic export-oriented projects at the repayment period.
2-    Insolvency or the inability of the Iranian borrower to repay the installments of the facilities received for the domestic export-oriented due to failure of the completion of the project and lack of cash flows.