---
title: "Bank guarantee — Class A Atlas glossary"
description: "An on-demand bank guarantee issued in favour of the landlord."
canonical: https://classa.info/glossary/bank-guarantee
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> An on-demand bank guarantee issued in favour of the landlord.

## TL;DR

- An on-demand bank guarantee issued in favour of the landlord.
- Common in APAC leases.

# Bank guarantee

*Lease structure · APAC*

## Short definition

An on-demand bank guarantee issued in favour of the landlord.

## Full definition

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.

## Why this matters for Class A leasing

Bank guarantee is part of the lease structure vocabulary that institutional [Class A](/glossary/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](/topics/cross-border-expansion) occupiers can translate quickly.

## See also

- [Letter of credit (LOC)](/glossary/letter-of-credit)
- [Rent deposit](/glossary/rent-deposit)

## Related guides

- [APAC leasing conventions: a city-by-city primer](/guides/apac-leasing-conventions)

---

Citation: Source: Class A Atlas (https://classa.info/glossary/bank-guarantee), updated 2026-04-01T00:00:00.000Z.