PETROLEUM BONDS (PETROBONDS)
PetroBonds have been the leading source of fuel bonds in Australia and New Zealand for over 20 years.
PetroBonds are an innovative form of surety bonding and provide retail and wholesale petroleum dealers with an alternative form of contractual security to bank guarantees and the like. PetroBonds are provided on an unsecured basis and as such dealers are free to utilise their cash or real estate assets as they see fit. PetroBonds incur no ongoing opportunity costs on working capital.
They are a simple, cost-effective means of meeting dealers’ financial security obligations to their wet stock suppliers and provide an alternative solution to securing an oil company’s financial exposure in the event of default or failure of its wholesale and retail customers.
Leasebonds are an alternative to bank guarantees or cash payments for commercial lease agreements and are identical to a bank guarantee; they have the same wording and are an unconditional, irrevocable, pay on demand undertaking.
Assetinsure is acting as a Managing General Agent and is authorised to issue PetroBonds on behalf of Lombard Insurance Company Limited.
For more information on the PetroBond business please visit www.petrobonds.com.au.