How innovative finance can fight deadly diseases
One of the vital components to Gavi’s capital structure is the International Finance Facility for Immunisation (IFFIm). A powerful and award-winning financial tool launched in 2006, IFFIm issues Vaccine Bonds on the capital markets against long-term donor pledges.
- 16 October 2020
- 2 min read
- by Gavi Staff
IFFIm & CEPI: Vaccine Bonds to fund CEPI’s fight against deadly diseases
In May 2019, the Kingdom of Norway donated NOK 600 million to the International Finance Facility for Immunisation (IFFIm) to support the Coalition for Epidemic Preparedness Innovations (CEPI). In a novel arrangement approved by Gavi, IFFIm enabled Norway to accelerate the impact of its multi-year pledge in a transaction that was awarded SRI “Deal of the Year” by news, data and analytics publisher mtn-i – a strong validation of IFFIm’s role in addressing global health and development challenges.
CEPI, which is developing new vaccines for some of the world’s most dangerous infectious diseases, is an innovative partnership between public, private, philanthropic and civil society organisations. Launched at the World Economic Forum 2017 Annual Meeting, CEPI’s mandate is to support the development of vaccines against deadly diseases for which no licensed vaccines are currently available: Middle East respiratory syndrome coronavirus, Lassa virus, Nipah virus, Disease X, Rift Valley fever, Chikungunya and, most recently, COVID-19. Gavi is working with CEPI towards the development of these new vaccines and will make them available at affordable prices to lower-income countries disproportionately affected by these diseases.
IFFIm: complying with Islamic financing principles to enable further investments for impact
In 2019, IFFIm completed a private placement Sukuk transaction with the Islamic Development Bank (IsDB) Group. The Sukuk raised US$ 50 million to accelerate funding for immunisation programmes that save children’s lives in the world’s poorest countries.
The Sukuk, a certificate that complies with Islamic financing principles, was issued by IFFIm, with IsDB as the sole investor. First Abu Dhabi Bank (FAB) acted as placement agent on the transaction.
This marks IFFIm’s third Sukuk, furthering IFFIm’s presence in Islamic capital markets, and building awareness and support for Gavi programmes among Gulf Cooperation Council investors.