Riyad Bank, London Branch v Dragados Industrial SA

Facts

Riyad Bank, London Branch, had issued three letters of guarantee, in the nature of on-demand bonds, in favour of Ma'aden Wa'ad Al Shamal Phosphate Company in connection with construction contracts relating to the Umm Wu'al Phosphate Project. The bonds — guarantee numbers RLG5807746 and RLG5807742, both originally dated 4 May 2014, and RLG6100025, originally dated 1 January 2017 — were in English but governed by the law of the Kingdom of Saudi Arabia, and provided for successive extensions on the beneficiary's written request. Dragados Industrial SA had given the bank counter-indemnities, two dated 28 April 2014 and one dated 22 December 2016, expressly governed by English law and subject to the exclusive jurisdiction of the English courts. Following the final extension of validity, running from 1 December 2025 to 31 May 2026, the aggregate commitment stood at US$57,091,299.75. On 29 December 2025 the beneficiary made demands under all three bonds for their full amounts; the bank notified the defendant, and for value on 8 January 2026 paid in full, sending written demands for reimbursement the same day. Nothing was paid. The defendant's English solicitors replied to the letter of claim, querying the extensions and a service-agent point, but no substantive defence followed and the defendant never acknowledged service. The bank applied for summary judgment.