GAVI Watch [to 29 November 2014]
http://www.gavialliance.org/library/news/press-releases/

:: Canada commits C$ 500 million to support immunisation in developing countries
28 November 2014
Gavi welcomed the announcement by Canada of a C$ 500 million contribution to support immunisation in developing countries between 2016 and 2020.

:: International Finance Facility for Immunisation issues first Sukuk, raising US$ 500 million
Dubai, UAE, 27 November 2014 – The International Finance Facility for Immunisation Company (IFFIm) today issued its inaugural Sukuk, raising US$ 500 million for children’s immunisation in the world’s poorest countries through Gavi, the Vaccine Alliance. This landmark transaction is the first socially responsible Sukuk with funds to be utilised for this purpose. This successful transaction marks the largest Sukuk al-Murabaha issuance in the public markets and is also the largest inaugural Sukuk offering from a Supranational.

The 3-year Sukuk – a financial certificate that complies with Islamic law – provides institutional investors with a socially responsible investment that will help protect tens of millions of children against preventable diseases.

The Sukuk was coordinated by Standard Chartered Bank, working with joint lead managers Barwa Bank, CIMB, National Bank of Abu Dhabi (NBAD) and NCB Capital Company (NCB Capital). The issue, maturing on 4 December 2017 has an issue price of 100% and carries a quarterly coupon of +15 basis points over 3-month USD LIBOR.

The Sukuk was oversubscribed, even with its unique structure for Sukuk market participants. IFFIm achieved strong diversification in its investor base with 85% of the order book coming from new and primarily Islamic investors. The regional distribution of investors was 21% based in Asia, 11% in Europe and 68% in the Middle East and Africa. Banks took 74%, and central banks / official institutions took 26%.

“IFFIm is dedicated to issuing socially responsible instruments for investors everywhere to make a real difference in saving children’s lives,” said IFFIm Chair René Karsenti. “The funds will be used to protect children near and far – in countries like Yemen and Mali to Afghanistan and Indonesia – from deadly diseases.”

IFFIm raises funds in the international capital markets to accelerate the availability of funds for immunisation programmes and health system strengthening by Gavi, the Vaccine Alliance. IFFIm’s financial base consists of legally binding grant payments (approximately US$ 6.3 billion) from its nine sovereign donors. The World Bank is IFFIm’s Treasury Manager.

“We are delighted to bring this landmark Sukuk to the growing Islamic Finance market. The use of proceeds – to help finance the delivery of life-saving vaccines and related health system strengthening support to many of the world’s poorest nations – is well aligned with the core principles of Islamic finance. We are grateful for the strong support from investors who value the diversification benefit of IFFIm as a new highly rated name in the Islamic capital markets and appreciate its purpose,” said Madelyn Antoncic, Vice President and Treasurer of the World Bank, IFFIm’s Treasury Manager.

From its inception in 2006 up until today’s announcement, IFFIm had raised about US$ 5 billion equivalent in the capital markets to support Gavi, whose mission is to save children’s lives and protect people’s health by increasing access to immunisation in poor countries…