Banks & Funds

The Matrix Banking team is run by an established team of highly experienced insurance, finance and banking professionals that provide specialist solutions that have been customised to suit the specific needs of Banks and Funds, the Matrix team also possess deep experience in this sector having worked for some of the worlds most renowned Banks, Development Banks and Funds.

Other team members are experts in a variety of financial disciplines which has enabled Matrix to expand our scope of services to provide innovative financial and insurance structuring solutions for Banks and Funds.

Matrix has established itself as a “go-to” provider for two particular products, the “insurance wrapper” (we may have even coined the term) and Non-Payment Insurance.

Insurance Wrappers, Matrix can use one or a combination of insurance wrapper tools to provide a range of benefits:
• Indemnify lenders against loss of principal and interest
• Harden collateral values to facilitate debt financing
• Protect operating companies against adverse moves in commodity prices
• Remove risk of implementing technology processes in executing projects or corporate growth plans
• Make capital, whether debt or equity, easier to find and close, and priced more efficiently even after the premium cost is factored.

Non-payment insurance features can include:
• 100% protection of debt, principal and interest
• More flexibility and protection compared with traditional risk distribution techniques
• Enhances project funders risk-bearing capacity
• Reduces borrower credit risk, country exposure relief and regulatory capital relief
• Reduces the cost of transactional finance

Policies are flexible in design and offer a range of durations, settlement processes and attachment points.

One recent case study is a $300 million agricultural project in a country with a CCC+ rating on the sovereign debt, and perceived to be exposed to major political risk. Using a variety of underyling risk mitigation tools, and collateral available from a well-funded project sponsor, Matrix was able to engineer a comprehensive solution that wrapped the entire bond financing with an A-rated credit backstop. The lower cost of funding far more than offset the cost of the premium for NPI.