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.
With effect from 2 September 2016 Assetinsure has acquired the renewal rights of the PetroBond business.
Assetinsure is acting as a Managing General Agent and is authorised to issue PetroBonds on behalf of CBL Insurance Ltd, an A-rated insurance company (AM Best). This arrangement facilitates similar petroleum bond transactions in other South East Asian countries with the result that all such bonds are written on the paper of CBL Insurance Ltd.
For more information on the PetroBond business please visit www.petrobonds.com.au.