IFFIm issues second Sukuk, raising US$ 200 million

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Funding to support immunisation of children in the poorest countries through Gavi

Dubai, UAE, 17 September 2015 – The International Finance Facility for Immunisation Company (IFFIm) today issued its second Sukuk, raising US$ 200 million for children’s immunisation in the world’s poorest countries through Gavi, the Vaccine Alliance. The transaction follows the exceptional response to IFFIm’s inaugural Sukuk issued in December 2014.

The 3-year Sukuk – a financial certificate that complies with Islamic financing principles – provides institutional investors with a socially responsible investment that will help fund Gavi’s life-saving mission of protecting millions of children against vaccine-preventable diseases.

This Sukuk was coordinated by Standard Chartered Bank, working with joint lead managers Emirates NBD Capital Limited (Dubai), Maybank Kim Eng (Maybank), National Bank of Abu Dhabi (NBAD) and NCB Capital Company (NCB Capital). The issue, maturing on 29 September 2018 has an issue price of 100% and carries a quarterly coupon of 14 basis points over three-month USD LIBOR.

The Sukuk was 1.6 times oversubscribed. The regional distribution of investors was 65% in the Middle East, 18% based in Asia and 17% in Europe. Banks took 78%, central banks / official institutions took 18% and fund managers 4%. IFFIm’s unique life-saving purpose attracted interest from both traditional Sukuk investors and conventional investors with a strong Environmental, Social and Governance (ESG) focus, some of which purchased a Sukuk for the first time.

“IFFIm is very pleased to bring a second Sukuk to the Islamic Finance Market,” said IFFIm Chair René Karsenti. “Proceeds from this transaction will support the life-saving work of Gavi, the Vaccine Alliance in our world’s poorest countries. We hope that this will pave the way for more socially responsible investing in the Islamic Market in the future”.

IFFIm raises funds in the international capital markets to accelerate the availability of funds for immunisation programmes and health system strengthening by Gavi. IFFIm’s financial base consists of legally binding grant payments (approximately US$ 6.3 billion) from its nine sovereign donors. The World Bank is IFFIm’s Treasury Manager.

“We are delighted to bring IFFIm’s second Sukuk to the growing Islamic Finance market. This Sukuk brings together two rapidly growing fields: Islamic Finance and Socially Responsible Investing. We are grateful for the strong support from investors who value the diversification benefit of IFFIm as a highly rated name in the Islamic capital markets and appreciate its purpose,” said Doris Herrera-Pol, Acting Treasurer and Director and Global Head of Capital Markets at the World Bank, IFFIm’s Treasury Manager.

“At Affirmative Investment Management we are pleased to have the opportunity to invest in this innovative structure from IFFIm to help support the important work being performed by Gavi, the Vaccine Alliance, saving lives and improving health in many of the world’s poorest countries. This offering from IFFIm provided the right opportunity for us to invest in a Sukuk structure for the first time”, said Justin Eeles, Senior Partner, Head of Portfolio Management, at Affirmative Investment Management.

From its inception in 2006 up until today’s announcement, IFFIm had raised about US$ 5.2 billion equivalent in the capital markets to support Gavi, whose mission is to save children’s lives and protect people’s health by increasing access to immunisation in poor countries. At the Third International Conference on Financing for Development in July 2015, the global development community recognised IFFIm's unique value and encouraged exploring its potential applicability to wider development efforts.

Joint Lead Manager Quotes:

‘”Standard Chartered Bank is honoured to be again associated with IFFIm for their second Sukuk issuance in less than a year. This transaction builds on the success of the first one in promoting ethical and socially responsible investments in the Islamic finance and Sukuk industry”, said Ahsan Ali, Managing Director and Head of Islamic Origination at Standard Chartered Bank.

“Emirates NBD Capital is delighted to support IFFIm and Gavi on a very successful Socially Responsible Sukuk issuance. This transaction positions the Islamic capital market as an attractive market for fundraising by multilateral institutions and organisations. We are honored to have been appointed as bookrunner on this landmark Sukuk and to continue to play a leading role in the development of the Global Islamic Finance industry”, said Mohammad Wajid Kamran, CEO at Emirates NBD Capital.

"Maybank Kim Eng is honoured to have been given the opportunity to be part of such a profound and meaningful capital raising efforts. As Joint Lead Manager and Joint Bookrunner for this Sukuk transaction, we are proud to have lent support to Gavi’s mission of saving children’s lives in the world’s poorest countries, which resonates strongly with Maybank Group’s mission of humanizing financial services. IFFIm’s successful Sukuk issuance is a testament to the increasing global demand for socially responsible investment as well as Maybank Kim Eng’s distribution capabilities in the Asian market," said John Chong, CEO of Maybank Kim Eng Group.

“We are honored to work again with IFFIm on its second Sukuk offering. The IFFIm and Gavi mission is a critically important one and I am very pleased that this is reflected in the positive investor receptivity to this transaction”, said Andy Cairns, Global Head of Debt Origination and Distribution at NBAD.

“NCB Capital is delighted to once again jointly lead the Sukuk fund raising by the World Bank on behalf of IFFIm and Gavi, the Vaccine Alliance. The second offering by the World Bank on behalf of IFFIm and Gavi within a year is a reflection of the increasing role of Sukuk in providing financing solutions globally. More importantly it is an acknowledgement of support for Gavi, which continues to dedicate major efforts to improve the lives of children where such efforts are most needed”, said Sarah Jammaz Al-Suhaimi, CEO of NCB Capital.

Co-Lead Manager Quotes:

"IFFIm bonds provide ESG investors with a unique "values" proposition by enabling them to directly finance vaccination in developing countries. Credit Agricole CIB is proud to have contributed to this iconic social bond issuance", said Tanguy Claquin, Head of Sustainable Banking at Crèdit Agricole CIB.

"Morgan Stanley is delighted to have been involved in this landmark transaction for IFFIm. IFFIm epitomises how the capital markets can help facilitate and accelerate tangible results that make a real difference to people's lives, and it is a huge privilege for Morgan Stanley to play a part in this", said Navindu Katugampola, Head of Green and Sustainability Bonds, Morgan Stanley.

Transaction summary:

Issuer:

IFFIm Sukuk Company II Limited

Obligor:

International Finance Facility for Immunisation Company (IFFIm)

Obligor Ratings:

AA / Aa1 / AA (Fitch / Moody’s / S&P)

Expected Issue Rating:

Aa1 by Moody’s

Amount:

US$ 200 million

Status:

Senior, Unsecured Trust Certificates

Sukuk Structure:

Murabaha

Format:

Regulation S

Pricing Date:

September 17, 2015

Settlement Date:

September 29, 2015

Maturity Date:

September 29, 2018

Profit Rate:

US$ 3-month LIBOR + 14bps p.a., payable quarterly in arrears

Issue Price:

100.00

Redemption Price:

100.00

Listing:

Not listed

Global Coordinator:

Standard Chartered Bank

Joint Lead Managers and Joint Bookrunners:

Emirates NBD Capital Limited, Maybank, National Bank of Abu Dhabi, NCB Capital and Standard Chartered Bank

Co-Lead Managers:

Crédit Agricole Corporate and Investment Bank and Morgan Stanley & Co. International plc.

Delegate:

Citicorp Trustee Company Limited

ISIN/Common Code:

XS1294598088/129459808

Disclaimer:

This announcement is not an offer of securities for sale, or a solicitation of an offer to buy securities, in the United States or any other jurisdiction where to do so would be unlawful. In particular, the certificates relating to the proposed Sukuk transaction will not be marketed, offered or sold to persons in the Kingdom of Bahrain, and until necessary regulatory clearances are in place in the Kingdom of Saudi Arabia.

The securities referred to herein will be offered and sold in offshore transactions outside the United States in reliance on Regulation S (“Regulation S”) under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities have not been nor will be registered under the Securities Act or any state securities law. These materials may not be distributed within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

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70%

70% of cervical cancer cases can be prevented with human papillomavirus vaccines. One woman dies from cervical cancer every two minutes - or 275,000 a year - over 85% in the developing world.

WHO

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