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IFFIm Prices US$500 Million 3-year Benchmark Vaccine Bonds
London, 29 October 2020 – The International Finance Facility for Immunisation Company (IFFIm) today priced US$500 million, 3-year fixed rate benchmark Vaccine Bonds that will provide Gavi, the Vaccine Alliance, flexible funding for its core immunisation programmes and efforts to develop and distribute eventual COVID-19 vaccines to countries around the world, particularly the poorest.
The transaction will mature on 6 November 2023, has a re-offer price of 99.821%, and carries a semi-annual coupon of 0.375%. This is IFFIm’s first US$ benchmark bond since its US$300 million 3-year floating rate bond in November 2017. Citi, Crédit Agricole CIB, and TD Securities are lead managers of the transaction.
“As the world confronts a devastating pandemic, this latest Vaccine Bond issuance is giving Gavi the financing it needs to act quickly, boldly and flexibly,” said IFFIm Board Chair Cyrus Ardalan. “These bonds enable private sector investors to directly contribute to a critical effort to address one of the biggest global challenges we face.”
“IFFIm’s Vaccine Bonds have long been an indispensable tool that allows Gavi to do what is necessary to ensure the availability of vaccines to the world’s poorest children,” said Dr. Seth Berkley, CEO of Gavi, the Vaccine Alliance. “This latest issuance will give Gavi the financial headroom to continue that core work, which has been complicated by the COVID-19 pandemic, as well as to play an essential role in the global collaboration to develop and equitably distribute eventual COVID-19 vaccines around the world.”
“We are pleased to see a robust response from investors for IFFIm and Gavi to support vaccine development and distribution in response to COVID-19,” said Jingdong Hua, Vice President and Treasurer of the World Bank, IFFIm’s Treasury Manager. “Investors are making a critical contribution to vaccine availability in the poorest countries, while benefitting from a uniquely impactful investment opportunity and the strong credit quality of the issuer.”
The diversified and high-quality orderbook reflects the appeal of the IFFIm mission with global investors. Geographic placement was 52% for Europe, Middle East and Africa and 40% for the Americas with the remaining 8% placed with Asian investors. Central banks and official institutions took 60%, asset managers, pension funds and insurance funds made up 26% and banks, bank treasuries and corporates rounded out the book with 14%…