What we offer
What we can do, and where
We can provide financing solutions, as well as Engineering Procurement and Construction frameworks for your projects. Through our financial partners, we can arrange for any government a very flexible and attractive financial package to large government-sponsored infrastructure investments in the following:
Renewable energy - Harbours - Airports - Power plants - Communication systems - Oil and gas / Mining - Roads construction - Transport
Factories - Industrial development - Waste treatment facilities - Housing projects - Hotels and resorts - Theme parks
Potable water - Hospital construction - Affordable health programs - Unprivilleged children care projects - Old age care facilities
How we do it
Mataraxia Ltd utilises Private Placement Programs (PPP) through the U.S. Federal Security & Exchange Commission (SEC). Fillings such as 540, 505 and 506, just to name a few, are used for raising capital to diversify our portfolio. Mataraxia Ltd also associates with other Insurance and Investment Professionals in expanding our client’s ability to receive industry advice and products with appropriately tailored Financial Planning, Consultation, Investment Products, and Market Investments and Strategies.
The solutions we support
Project Finance, Trade Finance & Monetization solutions
We provide Off-Balance Sheet, Limited Recourse, or Non-Recourse project financing for major international development projects.
Mataraxia provides project finance, trade finance, contract finance and monetization services worldwide, and with each our inexorable commitment to make every client deal more profitable. Our team is built on a diversified background on industries, we specialize in financing major infrastructure projects. Stable financing, efficient execution, expert solutions and customer service are how we help clients succeed.
Import, Export & Trade Funding
To meet the growing demand and minimize the impact of the global shortage of trade finance, we offer a variety of trade funding solutions that enhance your ability to trade globally, improve cash flow, and make your business more profitable. Our innovative trade funding solutions will make doing business internationally easier and more profitable, while providing individuals, companies, governments and other organizations a range of real-world trade finance solutions. We bring global expertise and an array of trade funding options to every deal while our team of experts works seamlessly to provide you the trade financing your business needs.
We finance the following types of PPP
Build – Operate – Transfer (BOT
Build – Own – Operate (BOO)
Build – Own – Operate – Transfer (BOOT)
Design – Build
Design – Build – Finance
Design – Construct – Maintain – Finance (DCMF)
O & M (Operation & Maintenance)
Financial Instrument Monetization
Recourse & Non-Recourse Monetization of Financial instruments for the intention of Project Funding.
Monetizing bank instruments is the process of liquidating bank instruments by converting them into cash. We can monetize for our clients:
Bank Guarantee (BG) - Sovereign Guarantees (SG) - Stand-By Letters of Credit (SBLC) - Bank Draft - Medium Term Notes (MTN) - Long Term Note (LTN).
We also offer to provide Monetization against some SKR (Safe keeping receipts) of selected tangible assets.
Risk Reduction through Wrap-up Insurance
Wrap up insurance is an effective way of insuring all of the liability risks associated with construction projects are appropriately addressed as identifying and managing them can be a confusing and daunting for the parties involved. The traditional insurance approach requires each party to procure and maintain separate coverage. Generally, the contractor and subcontractor then include the cost of insurance, plus a mark-up in their project bids.
Monetizations we use
There are four monetization solutions that we use. With the widespread adoption of blockchain technology, Mataraxia Ltd will adopt one more monetisation instrument in 2022, which is based on such technology. The following monetization instruments are globally trusted and used by the top 20 banks of the world.
A Bank Guarantee (BG) is delivered between the two banks through SWIFT MT799 and SWIFT MT760.
The Euroclear process is extremely fast, and the best part is there are no SWIFT fees. Euroclear is one of the most established financial transaction networks in the world and was founded by JP Morgan in 1968.
The Bloomberg process is extremely fast and there is no SWIFT fees. Bloomberg was founded in 1981 and is one of the most established financial transaction networks in the world.
The Depository Trust and Clearing Corporation issues BG's that we accept. Again, through this process, there are no SWIFT fees. This company was founded in 1999 and is seen as one of the leaders in the industry.
Banks we trust
We accept financial banking instruments of the top 50 banks of the world. The major ones are the following:
HSBC is one of the largest financial services firms in the world boasting a global financial network of 7,500 offices in 80 countries.
CitiGroup is a multinational bank founded in 1812 as the Bank of New York, they now have offices in 97 countries worldwide.
Barclays is a British multinational bank and financial services firm based in London and operating in over 50 countries.
Deutsche Bank AG is a global multinational investment bank and financial services company headquartered in Frankfurt, Germany. The bank's network spans 58 countries with a large presence in Europe, the Americas and Asia.
Standard Chartered PLC is a British multinational banking and financial services company headquartered in London, England. It operates a network of more than 1,200 branches and outlets across more than 70 countries.
BNP Paribas S.A. is a French international banking group. It is the world's 8th largest bank by total assets, and currently operates with a presence in 72 countries
Project finance details
Project finance deal structure
Project Finance provides long-term, limited recourse or non-recourse loans used to finance large commercial, industrial, infrastructure and sovereign projects in emerging market nations worldwide.
Unique to project financing is the debt and repayment structures are based on the projected cash flow of the project rather than the balance sheets of the project sponsor. Usually, a project finance structure involves a number of equity participants, who can be project sponsors or equity investors, and a consortium of lenders that provide loans to the project.
Project finance loans are almost always extended on a non-recourse or limited recourse basis and are secured by the project assets and operations. Repayment of the loans occurs entirely from project cash flow, not from the assets or credit of the borrower.
Underwriting for project development loans focuses on what is usually a business plan that includes extensive financial modeling and sensitivity analysis. The financing is typically secured by all of the project assets, including the revenue-generating components of the project. Lenders are granted a lien on all of the project assets and are further granted the right to assume managerial and operational control of a project, along with the mechanism to do so if the project doesn’t comply with the terms of the loan.
The borrower is typically a Special Purpose Entity or SPE which is created in the project finance documents specifically to own the project. The SPE ownership structure coupled with non-recourse debt effectively shields the assets of both the project sponsor and equity investors from collection efforts or deficiency actions if the project fails.
With collection actions barred if the deal fails, project lenders often require a commitment from the project owners to contribute capital to the project to ensure the project is sufficiently capitalized and financially sound, and also to demonstrate the project sponsors’ commitment to the deal.
The typical project financing structure, which has been simplified for these purposes, for a build, operate and transfer (BOT) project is shown. The key elements of the structure are:
Special Purpose Entity (SPE) project company with no previous business or record;
Sole activity of project company is to carry out the project – it then subcontracts most aspects through construction contract and operations contract;
For new build projects, there is no revenue stream during the construction phase and so debt service will only be possible once the project is online during the operations phase, thus there are significant risks during the construction phase;
Sole revenue stream likely to be under an off-take or power purchase agreement, sales of housing projects, toll fees from building roads, etc.
Project finance loans are non-recourse as to the borrowers, including the sponsors of the project and shareholders of the project company. There are extensive project financing documents that required no personal liability under the project loans. Thus, the project sponsor and project shareholders are liable only up to the extent of their shareholdings;
Project Finance Structure means the project remains off-balance sheet for the sponsors and for the host government.
Import financing is a specialized Trade Finance Solution used to finance the purchase of goods which are being exported from one country for the purpose of being imported into another country. Unless you’re prepared to pay cash up-front for goods you are importing, import financing provides benefits beyond just financing. Our services include deal structuring advisory services to ensure your deal is structured to limit your risk. When combined with a range of import financing options from bank guarantees and letters of credit to monetization, we deliver lower-risk, higher-profit trade finance deals for our clients.
Import financing solves many of the problems you face when sending money internationally. When you involve us as a third-party financier we can provide guarantees to both importers and exporters that ensure honest and transparent transactions.
As an exporter, you can’t afford to wait until your buyer receives your goods to get paid for the shipment and you certainly can’t wait until the importer has re-sold the goods to his buyers. But, if you could offer attractive purchase terms to your buyers you would rack up more sales. We can bridge that gap by structuring Export Financing that will protect you throughout the deal, provide you with the cash flow you need before shipment, and extend favorable terms to your buyer.
Export transactions are also impacted by internationally required trade finance due diligence, know your customer CIS requirements and anti-money laundering statutes that make trade and trade finance providers do the heavy lifting. The reliability and suitability of importers and exporters are also examined. With export financing, those investigations focus entirely on the export side of the ledger.
Import and Export Financing solutions
Letters of Credit
Letters of Credit are the most widely used import finance method. They are versatile, secure and are used to finance any import deal making them very effective payment instruments.
Bank Guarantees are instruments issued by banks that guarantee payment of the importer’s obligations to the exporter if the importer fails to make full payment under the contract.
Bank Instrument Monetization converts or monetizes idle financial instruments into cash by liquidating them to provide capital for import financing with very little cost or risk
Invoice factoring is a common import financing method where the importer sells invoices or accounts receivable to a factoring company to raise cash that can be used to fund imports.
Types of PPP's
Build – Operate – Transfer (BOT)
A BOT model is generally used to develop a discrete asset rather than a whole network, for example a toll road. This simple structure provides the most freedom for the private sector partner during construction and the public sector bears the equity risk.
Build – Own – Operate (BOO)
This is a similar structure to BOOT (below), but the facility is not transferred to the public sector partner. A BOO transaction may qualify for tax exempt status and is often used for water treatment or power plants.
Build – Own – Operate – Transfer (BOOT)
The private sector builds and owns the facility for the duration of the contract, with the primary goal of recouping construction costs (and more) during the operational phase. At the end of the contract the facility is handed back to the government. This structure is suitable when the government has a large infrastructure financing gap as the equity and commercial risk stays with the private sector for the length of the contract. This model is often used for school and hospital contracts.
Design – Build
The contract is awarded to a private partner to both design and build a facility or a piece of infrastructure that delivers the performance specification in the PPP contract. This type of partnership can reduce time, save money, provide stronger guarantees (as the work is with a single entity rather than a consortium) and allocate additional project risk to the private sector
Design – Build – Finance
The private sector constructs an asset and finances the capital cost during the construction period only.
Design – Build – Finance – Operate (DBFO)
Design – Build – Finance – Maintain (DBFM)
Design – Build – Finance – Maintain – Operate (DBMFO)
Design – Construct – Maintain – Finance (DCMF)
Design, Construct, Maintain and Finance is very similar to DBFM. The private entity creates the facility based on specifications from the government body and leases it back to them. This is generally the convention for PPP prison projects.
O & M (Operation & Maintenance)
In an O&M contract, a private operator operates and maintains the asset for the public partner, usually to an agreed level with specified obligations. The work is often sub-contracted to specialist maintenance companies. The payment for this contract is either via a fixed fee, where a lump sum is given to the private partner, or more commonly a performance-based fee. In this situation, performance is incentivized using a pain share / gain share mechanism, which rewards the private partner for over-performance (according to the agreed SLAs) or induces a penalty payment for work which has fallen short.
Types of Financial Instruments
Bank Guarantee (BG)
A Bank Guarantee (BG) is an irrevocable commitment done by a bank on behalf of its client and promised to meet all financial obligations of its client in case of default. A BG is the European form of the well-known “Stand by letter of Credit” (SBLC) issued by most banks in the USA. In practical and financial terms, a BG and an SBLC are essentially the same thing; when they are cash-backed, they are usable as collateral. BG’s can be used to enhance your ability to apply for a line of credit with your bank; they can be used as collateral when your bank is asking for additional comfort when you ask them to fund your project.
Standby Letters of Credit (SBLC or SLOC)
A Stand-By Letter of Credit (SBLC’s or SLOC’s) is an irrevocable commitment done by a bank on behalf of its client and promised to meet all financial obligations of its client in case of default. An SBLC is the USA form of the well-known “Bank Guarantee” (BG) issued by most banks in Europe. In practical and financial terms, a BG and an SBLC are essentially the same thing; when they are cash-backed, they are usable as collateral.
A bank draft is a check drawn on a bank’s funds, similar to a cashier’s check. The funds might be held in the same bank that creates the draft, or the money behind the draft might be held in the bank’s account held at a different bank.
Medium Term Notes (MTN)
A Medium Term Note (MTN’s) is a tradable and discountable debt instrument issued by banks, collecting an annual interest before expiring upon maturity with a specified face value. MTNs can be provided to Clients in need of recourse collateral, non-recourse collateral or for credit-enhancement purposes.
Long Term Note (LTN)
Long-term notes are similar to bonds since they both carry a stated or implied rate of interest and have a known maturity date. Unlike a bond, notes payable are not issued to the public and traded. They are typically bilateral agreements between the issuing company and a trade partner or financial institution. For example, a three-year loan obtained from a bank would be classified as a long-term note payable.
Typically, risk is pushed downstream—from owners to general contractors, and from general contractors to subcontractors—through contractual indemnifications, contractually mandated minimum insurance requirements and additional insured provisions.
While this approach may be customary for the parties involved, it is not without complications. Due to the number of policies and insurers involved, the traditional approach creates the potential for unforeseen liability issues/gaps to emerge. Some parties may have aggregate issues, inadequate limits, gaps in coverage or no insurance at all. Furthermore, because there are various insurance companies covering one project, each claim has the potential to cause costly and time-consuming cross litigation. As an alternative to having each party obtain separate liability policies, project owners and general contractors can turn to a wrap up insurance programs to manage their risks.
Wrap up insurance programs are centralized insurance and loss control programs that can protect the project owner, general contractor and/or subcontractors under a single insurance policy or set of policies for the construction project.
Insurers typically offer two types of wrap up insurance programs based on the party paying for and/or coordinating the program:
(1) Owner Controlled Insurance Program (OCIP): Under an OCIP, the project owner sponsors and controls the program. Accordingly, the project owner is the first named insured, and the general contractor, subcontractors and other participants are named insureds.
(2) Contractor Controlled Insurance Program (CCIP): Under a CCIP, the general contractor sponsors and controls the program. The general contractor is the first named insured, and the subcontractors and other participants are named insureds. Depending on the program, the project owner is either an additional insured or named insured.
While wrap up insurance programs are most frequently used for large, single-site projects, a blanket or rolling wrap-up can be used to insure multiple projects under one program.