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IFFIm raises finance by issuing bonds in the capital markets and so converts
long-term government pledges into immediately available cash resources.
The long-term government pledges will be used to repay the IFFIm bonds.
The World Bank acts as financial adviser and treasury manager to IFFIm.
So far IFFIm bonds have raised US$ 1.6 billion in immediately available
cash resources for GAVI immunisation programmes.
Bonds issuances so far
Japan
June 2009
In June, 2009, a multi-tranche uridashi offering of IFFIm vaccine bonds,
arranged by HSBC Securities (Japan), was sold through a group of 19 securities
distributors and offered to Japanese investors online. The total amount
of the offering was approximately USD equivalent 130 million and was composed
of three tranches: (i) a four year AUD fixed rate tranche, (ii) a four
year ZAR fixed rate tranche and (iii) a 15 year ZAR deep discount tranche.
Great Britain
May 2009
IFFIm issued its first bonds in the Sterling market in May 2009. The two
tranche transaction raised an aggregate GBP 266 million (approximately
USD equivalent 400 million) and was split between a GBP 250 million fixed
rate tranche for institutional investors and a GBP 16,227,290 zero coupon
tranche for retail investors. The institutional tranche was lead managed
by HSBC and Royal Bank of Scotland. The retail tranche was packaged into
the HSBC Vaccine Investment Plan Individual Savings Account (ISA).
Japan
May 2009
On 26 May 2009, IFFIm completed a multi-tranche uridashi offering in Japan.
The total amount of the offering was USD equivalent 142.9 million made
up of two tranches, one in USD and the other in AUD. Both tranches are
due 25 May 2012.
The offering was arranged by Mitsubishi UFJ Securities Co., Ltd.
Japan
February 2009
An offering to Japanese retail investors in February 2009 raised US$ 429
million equivalent. Investors were given the opportunity and choice of
investing in “vaccine bonds” denominated in three currencies:
South African rand, New Zealand dollars, and Australian dollars. The currencies
were selected based on investor demand. This offering for the Japanese
market was arranged by Daiwa Securities SMBC Co. Ltd., the wholesale securities
firm under Daiwa Securities Group, and distributed by Daiwa Securities
to Japanese investors.
Japan
March 2008
Japanese investors welcomed the launch in March 2008 of IFFIm’s
debut offering in the Japanese retail market, a ZAR 1.7 billion (US$ 223
million equivalent) two year uridashi issue. The “vaccine bonds”
were arranged by Daiwa Securities SMBC Co. Ltd., the wholesale securities
firm under Daiwa Securities Group, and distributed by Daiwa Securities
to Japanese investors.
Inaugural offering
November 2006
IFFIm's inaugural bonds were issued in London on 14 November 2006 and
raised US$ 1 billion. The bonds were priced comparably to other sovereign/supranational
issuers and were bought by a broad range of investors – both geographically
and by investor type – including several central banks, pension
funds, fund managers, and insurance companies. Deutsche Bank and Goldman
Sachs lead-managed this inaugural bond issue.
Individuals who have supported the IFFIm initiative include His
Holiness Pope Benedict XVI; Her Majesty Queen Rania Al-Abdullah of
Jordan; Cardinal Renato Raffaele Martino; Archbishop of Canterbury, Dr
Rowan Williams; Chief Rabbi, Dr Jonathan Sacks; Iqbal Khan of the Muslim
Council of Britain; Ramesh Khalidi of the Hindu Forum; Indrajit Singh
OBE of the Sikh Council of Britain as well as Bono and Bob Geldof.
Bond Issuance Documents
For bond issuance documents, click here.
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