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- Bond is backed by contributions from 11 sovereign donors
- Sania Nishtar, Gavi CEO: “Today’s bond issue provides us with vital flexibility in our mission to protect millions of children from preventable diseases and to protect our world from the threat of future pandemics."
London – The International Finance Facility for Immunisation (IFFIm) today priced a US$ 1 billion, 3-year fixed-rate bond to fund critical vaccine research and immunisation programs. This is IFFIm’s largest single benchmark transaction in the primary market since its inaugural benchmark in 2006.
The bond’s proceeds will support Gavi, the Vaccine Alliance, to support routine immunisation in low-income countries and respond to infectious disease outbreaks. In addition, the Coalition for Epidemic Preparedness Innovations (CEPI) will receive funding to support the development of new vaccines to combat deadly diseases.
The bond, which matures on 29 October 2027, carries a semi-annual coupon of 4.125% and a semi-annual re-offer yield of 4.222%. It was priced at 20.7 bps over the reference US Treasury. The World Bank is IFFIm’s Treasury Manager. BofA Securities, HSBC, and TD Securities are the lead managers of the transaction.
Dr. Sania Nishtar, CEO of Gavi, the Vaccine Alliance, commented on the importance of this transaction: "IFFIm has been a groundbreaking and indispensable tool to Gavi since its inception in 2006. Today’s bond issue provides us with vital flexibility in our mission to protect millions of children from preventable diseases and to protect our world from the threat of future pandemics."
For Gavi and more recently CEPI, IFFIm is an important financial tool. Since 2006, IFFIm has provided US$5.8 billion in financing to Gavi – one sixth of its overall budget - and has been critical in helping Gavi respond to a deadly Ebola outbreak and COVID-19, in addition to supporting routine immunisation and strengthening health systems in lower income countries. IFFIm has also provided approximately US$ 272 million in past financing for CEPI to research and develop new vaccines.
The success of this bond highlights the ongoing strength of IFFIm’s model, which leverages sovereign support and strong financial structuring to offer investment opportunities that make a positive impact on children’s health.
Ken Lay, IFFIm Board Chair, commented: “This latest issue highlights IFFIm’s unparalleled strengths—backed by sovereign donors, driven by a vital global mission, and structured to maximise impact. IFFIm's bonds continue to offer investors compelling opportunities to earn competitive returns with good secondary market liquidity and assured use of proceeds.”
Dr. Richard Hatchett, CEO of CEPI, said: “Epidemics and pandemics pose a serious threat to global health security which can be mitigated through investment in vaccine R&D and manufacturing. The IFFIm financing mechanism enables CEPI to access the critical funding it needs to accelerate the development of vaccines against emerging infectious disease threats, for the benefit of all.”
As Gavi approaches the end of its 2021-2025 strategic period and prepares for the next phase, this bond issue comes at a critical time and plays a pivotal role in supporting life-saving vaccine programs around the world.
Jorge Familiar, Vice President and Treasurer, World Bank, stated: “Capital markets are a powerful tool for connecting private investment with global public goods. As IFFIm’s Treasury Manager, the World Bank is pleased to support IFFIm in accessing capital markets to provide a long-term and flexible funding source to Gavi to accelerate access to vaccines and vaccine development.”
The order book exceeded US$ 4 billion, marking IFFIm’s largest order book to date. The bond attracted interest from a diverse group of investors, including 64% from central banks and official institutions, 22% from asset managers and insurance/pension funds, and 14% from banks, bank treasuries, and corporates. Geographic distribution comprises 42% Europe, Middle East & Africa, 38% Americas, and 20% Asia.
Lead Manager Quotes
Adrien de Naurois, Head of SSA & EMEA IG Syndicate, BofA Securities, said:“Congratulations to the IFFIm team on a successful return to the USD market. Today’s transaction, the first USD benchmark in two years, is a clear demonstration of IFFIm’s loyal and diverse investor base, attracted by the importance of its mission to deliver immunisation programmes to those most vulnerable via the ongoing work of Gavi, the Vaccine Alliance. BofA is honoured to have supported IFFIm in accessing the capital markets with this important transaction.”
Asif Sherani, Head of DCM Syndicate and Public Sector DCM, HSBC, said: “IFFIm has returned to the USD market in fine style, achieving its largest orderbook to date and, in doing so, establishing a strong benchmark for future issuance. The depth and diversity of demand generated demonstrates investors’ recognition of IFFIm’s critical mandate of providing vaccines and promoting health in lower and middle-income countries globally. HSBC is truly honoured to have been involved.”
Laura O'Connor, Managing Director, Head of UK Debt Capital Markets, TD Securities, said: “Congratulations to the IFFIm team for a landmark return to the US dollar market. Against a volatile macroeconomic backdrop, IFFIm comfortably managed to execute an oversubscribed US$ 1 billion 3-year benchmark, its largest ever orderbook with participation from a wide variety of high-quality investors. It is an honour for TD to support IFFIm's mission and be appointed bookrunner on this transaction.”
Summary Terms
- Issuer: International Finance Facility for Immunisation Company (IFFIm)
- Issuer rating: AA-/Aa1/AA (Fitch/Moody’s/S&P)
- Format: Reg S
- Amount: US$ 1,000,000,000
- Pricing Date 23 October 2024
- Settlement date: 30 October 2024
- Maturity date: 29 October 2027
- Coupon: Semi-annual, 30/360
- Coupon Payment Dates: April 29th and October 29th each year, commencing on 29 April 2025, up to and including the Maturity Date.
- Issue price: 99.730%
- Listing: Luxembourg Stock Exchange’s EURO MTF market
- Joint lead managers: BofA Securities, HSBC, TD Securities
- ISIN / Common Code: XS2926256186 / 292625618
Disclaimer
These materials are not an offer for sale of securities. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. The issuer does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States. Any offering of securities will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the issuer and management, as well as financial statements.