Spartacus Derivative Products
Confidential · Investor Presentation

A Triple-A Debt Origination Mechanism

made possible by a unique swap trading platform

What do you represent?
Private Sector
Spartacus Derivative Products, LP · A Platform of Solvaris Ventures
For EMDE Banks

Lead-manage triple-A MDB debt issues — whenever the swap can be novated through a CCP.

EMDE banks are not generally accepted as triple-A MDBs' swap counterparties. Spartacus resolves this challenge.

USD300 BN+
Triple-A MDB and DFI issuance swapped every year. The bond and the swap are inseparable.
Fair access
This volume of debt issues and swap trades is almost exclusively executed by bulge bracket banks.
Zero
CCP memberships required. EMDE banks interact with CCPs as clients of CCP members.
The Challenge

EMDE banks with relatively low credit ratings may not participate in the general debt issuance and swap trading of triple-A MDBs.

The counterparty lists
Triple-A MDBs do not add you to their general swap counterparty lists irrespective of your capabilities.
The MDBs in your country are owned by your government
Yet their issuance and swaps run through the same global banks.
No standard channel
Without general swap counterparty acceptance, the value of the relationship cannot be maximized.
Exceptions are not access
Narrow exceptions — granted, for example, for local currency operations — worsen MDBs' counterparty risk exposures and raise questions about fair access.
What Access Delivers
Every mirror swap
As the participating bank, you execute the offsetting leg of each MDB swap, on triple-A terms.
The economics of note-swap pairs
A plain swap has vastly different economics from a note-swap pair. Lead-managing triple-A debt issues offers significant opportunities.
Lead-manage MDB debt issues
Interaction with the investors of triple-A MDBs and integration into the infrastructure of global markets are value-generating activities.
The Closest Peer

Goldman Sachs Mitsui Marine Derivative Products, LP

A bank and an insurer standing behind one highly rated swap intermediary, since 1993.

Spartacus has GSMMDP's legal and operational structure: a Delaware Limited Partnership with two Limited Partners, zero net market risk due to mirror transactions, a small equity base, and high leverage. If one of the LPs is a bank, then the economics are optimally internalized.

The main difference is the scope of activities. Spartacus trades only with MDBs and EMDE banks, and only when its transactions with EMDE banks can be novated through a qualifying CCP: its ultimate counterparties are solely triple-A MDBs and qualifying CCPs. As a result, Spartacus's mission deliverables — improving sovereign debt sustainability, developing local capital markets, and fostering domestic resource mobilization — are inherent outputs of its operational activities.

Why Now

With sovereign purchases of MDB debt declining, MDBs will rationally replace redundant global bonds with private placements — and the availability of swaps that can be attached to notes is a key constraint on that issuance. EMDE banks, which can be of value in the issuance of private placements, have traded swaps with MDBs only under narrow exceptions. By centralizing MDBs' debt issuance and swap trading activities with EMDE banks, Spartacus renders exceptions unnecessary — access on triple-A terms, through one rated counterparty.

For Limited Partners

Own the swap house singularly focused on USD 180 billion of annual triple-A issuance.

Dollar returns based on EMDE market risk and triple-A credit risk — no EMDE operations.

Every triple-A bond is swapped at issuance. The borrowing itself has two parts: benchmark global bonds, which establish reference prices, and private placements, which deliver lower funding costs — about USD 180 billion of the USD 300 billion issued each year. Spartacus's focus is deliberately narrow: the private-placement segment alone, where integrating EMDE banks lowers funding costs and broadens access.

23.2%
Year-1 annual return at model defaults. Profitable from the first year, with no J-curve.
30%
Net return on capital at scale, at model defaults.
100%
Free capital held in US Treasuries, earning interest and meeting collateral requirements.
Illustrative objectives at the interactive financial model's defaults, not projections.
The Opportunity

Integrating EMDE banks in the debt issuance and swap trading activities of triple-A MDBs.

The attached swap
There can be no debt issuance without an attached swap.
Private placements
Private placements are less expensive than global bonds.
The counterparty lists
EMDE banks, which can be of value in the issuance of private placements, are not on the general swap counterparty lists of MDBs; they trade swaps with MDBs subject to narrow exceptions.
The exceptions
Where such exceptions occur, MDBs carry unnecessary counterparty risk, and questions about fair access arise.

By centralizing MDBs' debt issuance and swap trading activities with EMDE banks, Spartacus improves systemic risk and renders exceptions unnecessary.

Risk Profile
Zero net market risk
Every position is mirrored.
Insignificant counterparty risk
A triple-A MDB stands on one side and a qualifying CCP on the other.
Bankruptcy remoteness
The Partnership is a single-purpose Delaware LP with a majority of independent directors.
Spartacus and TCX

Although the Founder helped build both, they are fundamentally different.

Leverage
SPARTACUS40× — under the fixed leverage model
TCX4×
Balance-sheet focus
SPARTACUSFocuses on the majority of MDB liabilities (MDBs' funding operations).
TCXFocuses on a tiny portion of MDB and DFI assets (MDBs' and DFIs' lending operations).
Market risk
SPARTACUSCarries zero net market risk.
TCXCarries extreme market risk.
Counterparty risk
SPARTACUSInsignificant counterparty risk.
TCXConsiderable counterparty risk.
The full eight-point comparison is in Structure & Detail below.
The Closest Peer

Goldman Sachs Mitsui Marine Derivative Products, LP

A bank and an insurer standing behind one highly rated swap intermediary, since 1993.

Spartacus has GSMMDP's legal and operational structure: a Delaware Limited Partnership with two Limited Partners, zero net market risk due to mirror transactions, a small equity base, and high leverage. If one of the LPs is a bank, then the economics are optimally internalized.

The main difference is the scope of activities. Spartacus trades only with MDBs and EMDE banks, and only when its transactions with EMDE banks can be novated through a qualifying CCP: its ultimate counterparties are solely triple-A MDBs and qualifying CCPs. As a result, Spartacus's mission deliverables — improving sovereign debt sustainability, developing local capital markets, and fostering domestic resource mobilization — are inherent outputs of its operational activities.

The Offering

Two Limited Partners.

The capital
Because the Swap House operates on a fixed leverage model, the ideal initial combined equity contribution by the LPs is around USD 200 million.
The partners
The Limited Partners cannot be random: they must be institutions that have aligned interests and shared visions.
Optimized economics
If one Limited Partner is a bank, the economics and operations are optimized.
Use of funds
The equity contributions of LPs will be used primarily for the purpose of pledging collateral to MDBs and CCPs. The funds will be invested in US Treasuries and will generate income.
Why Now

Since 2020, sovereign debt, measured either in nominal terms or as a percentage of economic output, has reached historical peaks. EMDEs need lower borrowing rates, while sovereigns short of resources for general capital increases are unlikely to purchase MDB debt. Within an MDB's borrowing program, global bonds can be limited to USD 4 billion per annum, with the remainder issued as private placements. Centralizing MDBs' debt issuance and swap trading activities with EMDE banks limits counterparty risk and offers broad access. Spartacus is that market-based solution — a win for borrowing and non-borrowing member countries, for EMDE banks, and for MDBs.

For Multilateral Development Banks & DFIs

Helping development institutions help their member countries.

A triple-A debt origination mechanism on market terms: no ODA, and no sovereign or MDB investment.

USD300 BN+
Every triple-A bond is swapped at issuance. About USD 180 billion of the USD 300 billion issued each year is private placements, which deliver lower funding costs.
Centralized origination capacity
By centralizing debt issuance and swap trading with EMDE banks, Spartacus removes the key constraint on the issuance of private placements.
Zero
Concessional funding. No concessional pricing, no subsidized financing, and no sovereign or MDB investment.
Your Member Countries' Context
  • ODA fell 23% in 2025, the steepest decline on record, while the SDG financing gap keeps widening.
  • 3.4 billion people live in countries that spend more on debt interest than on education or health.
  • The annual SDG financing gap in EMDEs is estimated at USD 4 trillion and widening.
  • As countercyclical lenders, MDBs can strengthen sovereign debt sustainability by lowering lending rates to borrowing member countries — on market terms, without ODA dependence.
Issuance & Funding

Spartacus facilitates the issuance of triple-A MDB debt. It broadens investor bases, diversifies product offerings, and lowers funding costs. Lower MDB funding costs translate into lower MDB lending rates to borrowing MDB member countries.

Functioning within prevailing rules and standards, the platform generates significant development impact through the optimal use of financial infrastructure, the equitable provision of economic benefits, and the judicious alignment of strategic incentives.

Global Bonds & Private Placements
  • Sovereigns provide MDBs with both equity and debt. A sovereign that cannot support a general capital increase (GCI) is highly unlikely to purchase the MDB's debt: paid-in capital represents about 7% of a GCI, while debt is purchased at close to par.
  • It is common for an MDB's annual borrowing program to eclipse its total paid-in capital. With sovereign debt sustainability in mind, any reduction in sovereign purchases of MDB debt must be adequately offset.
  • Assuming an on-the-run USD curve is established annually, there is no compelling reason to issue more than USD 1 billion at each of the 2-, 5-, 7-, and 10-year points. Within a borrowing program, issuance of global bonds beyond USD 4 billion is redundant.
  • Replacing redundant global bonds with private placements improves overall borrowing cost — accompanied by superior funding-product and investor-base diversification, and by high-impact capital market development and domestic resource mobilization.
The Challenges
Redefining mobilization
Viewing "mobilization" as a comprehensive balance-sheet exercise.
Balancing benchmark issues and private placements
Maintaining reference curves while minimizing funding costs.
Managing "reverse inquiry" dependence
Having a dedicated supplementary origination mechanism for private placements.
What It Delivers
The centralization function
Instead of granting EMDE banks narrow exceptions, MDBs can work with Spartacus, which will plug in all EMDE banks on market terms.
Broader investor bases
Spartacus broadens investor bases and diversifies product offerings to debt investors.
Lower overall funding costs
Lower funding costs translate into lower lending rates to borrowing member countries.
Domestic capital market development
Knowledge transfers to EMDE banks through their participation in triple-A MDB issuance and swap trading.
Global capital market development
Spartacus will work with QCCPs to expand cleared offerings, including NDCCS clearing.
A steadfast partner
With numerous global banks leaving EMDEs, collaborate with a steadfast partner singularly focused on triple-A MDB origination by harnessing domestic EMDE capacities.
Why Now

With ODA declining, sovereigns short of resources for GCIs are unlikely to purchase MDB debt — and any reduction in sovereign purchases must be adequately offset. The rational offset is to replace redundant global bonds, issuance beyond USD 4 billion per annum, with private placements. The availability of swaps that can be attached to notes is a key constraint on the issuance of private placements. By centralizing debt issuance and swap trading with EMDE banks, Spartacus removes that constraint, limits counterparty risk, and offers broad access — on market terms, without ODA dependence.

For Governments

Lower MDB lending rates, requiring neither a general capital increase nor a replenishment.

A market-based solution for sovereign debt sustainability, capital market development, and domestic resource mobilization.

USD4 TN
The estimated annual SDG financing gap in EMDEs, widening since the pandemic.
23%
The fall in official development assistance in 2025, the steepest decline on record.
3.4 BN
People in countries spending more on debt interest than on education or health.
The Challenge
ODA is declining sharply
ODA fell 23% in 2025, the steepest decline on record, while the SDG financing gap keeps widening.
Concessional resources
Concessional resources are scarce and ought to be used prudently. Spartacus does not rely on them.
MDBs operate in EMDEs, but EMDE banks are not fully integrated in MDB debt issuance and swap trading
EMDE banks with relatively low credit ratings may not participate in the general debt issuance and swap trading of triple-A MDBs.
What It Delivers
Lower MDB lending rates to borrowing member countries
Lower MDB funding costs translate into lower MDB lending rates.
Fewer resources committed to global bond purchases
Shifting MDB borrowing programs from global bonds to private placements replaces CB/OI (Central Banks & Official Institutions) investors with sophisticated private investors.
Knowledge transfer to your banks
Your banks participate in the debt issuance and swap trading activities of triple-A MDBs.
Capital market development and domestic resource mobilization
Spartacus develops local markets and mobilizes domestic resources.
Why Now

In 2025, official development assistance fell to USD 174 billion — the largest annual drop ever recorded and the second consecutive year of decline, returning ODA to its pre-Agenda 2030 level. Core funding to the United Nations system fell by more than a quarter in a single year. In 2024, EMDEs made over USD 920 billion in net interest payments on public debt: in much of the world, this eclipsed spending on education or health, even as the gap the Sevilla Commitment was meant to close widened to USD 4 trillion. Public resources are insufficient; the promise of Agenda 2030 is in peril; and private resources need adequate incentives. Requiring neither a general capital increase nor a replenishment, Spartacus provides those incentives, mobilizes domestic resources, develops capital markets, and lowers EMDEs' debt burdens.