An on-demand bank guarantee issued in favour of the landlord.
Lease structure · APAC
An on-demand bank guarantee issued in favour of the landlord.
Common in APAC leases. Typical sizing: 3-6 months of rent. Functions similarly to a US letter of credit but is governed by local banking practice. Singapore and Hong Kong landlords routinely require bank guarantees.
Bank guarantee is part of the lease structure vocabulary that institutional Class A occupiers, landlords, and advisers use across APAC markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the APAC definition alongside the global standard so cross-border occupiers can translate quickly.