IFFIm’s equity base consists of legally binding grants from its sovereign sponsors (Brazil, France, Italy, Norway, Spain, Sweden and the United Kingdom). These countries have agreed to pay these obligations in a specified schedule of payments totalling US$3.9 billion over 20 years. Before IFFIm’s inaugural bond, each initial supporting donor will have taken the relevant parliamentary action to authorize the entire amount of its commitment.
To date, the sponsoring countries have committed to pay the following amounts:
- United Kingdom has committed a total of US$2.6 billion over 20 years;
- France has committed US$283 million over 15 years;
- Italy has committed a total of US$705 million over 20 years;
- Spain has committed a total of US$240 million over 20 years;
- Sweden has committed a total of US$43 million over 15 years;
- Norway has committed a total of US$27 million over 5 years;
- Other donors are expected to follow suit. Brazil, for example, has announced that it will pay $20 million over 20 years to IFFIm.
Summary of key payment obligations and flows:
- Donors will make legally binding, irrevocable grants that are assigned to IFFIm.
- IFFIm will issue triple-A-rated bonds in the international capital markets.
- IFFIm will manage bond proceeds as liquid investments until they are needed for immunization programs in recipient countries. Funds will flow as required to procure needed vaccines and to support recipient countries through GAVI, for GAVI-approved programs.
- IFFIm will repay bondholders using funds provided by donors pursuant to the agreed and legally binding payment obligations
