Latin America: Why Surety Demand Is Accelerating Across the Region

09 October 2025

A Continent of Construction Activity

Latin America's construction sector is generating sustained demand for surety and guarantee products, driven by infrastructure investment across Colombia, Chile, Peru, Mexico, and Brazil. Government infrastructure programmes, resource extraction projects, energy transition investments, and urban development are all active contributors to a construction pipeline that shows no sign of slowing.

The surety market in Latin America is mature relative to many other emerging regions. Countries including Mexico, Colombia, Chile, and Brazil have established surety frameworks, and the use of performance bonds and advance payment bonds in construction contracts is standard practice for both public and private sector procurement.

The Shift from Bank Guarantees

As in other regions, Latin American contractors are increasingly looking at surety bonds as an alternative to bank guarantees — particularly in a higher interest rate environment. The economic logic is the same: surety bonds do not consume banking credit lines in the way that bank guarantees do, allowing contractors to preserve working capital for operational purposes and pursue a larger portfolio of projects simultaneously.

The segment breakdown in the Latin American surety market reflects the region's construction focus. Contract surety bonds — performance, advance payment, and bid bonds — dominate, with the construction and infrastructure sectors accounting for the largest share of demand.

International Contractor Access

Latin America attracts contractors from Europe, the US, Asia, and the Middle East, particularly for large-scale infrastructure, energy, and mining projects. For international contractors working in the region, meeting the local bond requirements — in the correct form, issued by an acceptable guarantor — can require specialist facilitation, particularly where the contractor does not have established banking or insurance relationships in the relevant country.

How Solidum Global Can Help

Solidum Global facilitates access to performance bonds and advance payment bonds for construction contracts in Colombia, Chile, Peru, Mexico, and across the broader Latin American market. If you have a bond requirement for a project in the region, submit an enquiry and our team will assess whether our partner network can assist.

Reference: General Indemnity Group — Key Trends Facing the Surety Market in 2025: gi.insure/articles/key-trends-facing-the-surety-market-in-2025

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