Japanese investors offered new opportunity to purchase life-saving vaccine bonds
Japanese investors offered new opportunity to purchase life-saving vaccine bonds
1 June 2012
The International Finance Facility for Immunisation Company (IFFIm), in collaboration with the GAVI Alliance, the World Bank and HSBC, will offer a new issue of “vaccine bonds” to Japanese retail investors. [日本語]
This is the third vaccine bond issue that HSBC has arranged following successful issues in 2009 and 2010 that raised a total of USD 300 million.
Investors will be offered a 3-year fixed-rate South African rand-denominated bond, a 4.5-year fixed-rate Australian dollar-denominated bond and a 15-year South African rand-denominated deep-discount bond (see below for further details). The total amount of the issuance in USD equivalent is 131 million.
Summary of Expected Terms
|
|
4.5-year AUD |
15-year ZAR |
3-year ZAR |
|
Currency and Amount |
AUD 11.5 million |
ZAR 520 million |
ZAR 471 million |
|
Approximate USD Equivalent Amounts |
USDeq. 11million |
USDeq. 30 million |
USDeq. 57million |
|
Settlement Date: |
June 28, 2012 |
||
|
Maturity date: |
December 28, 2016 |
June 29, 2027 |
June 29, 2015 |
|
Issue price: |
100% |
47.59% |
100% |
|
Denomination: |
AUD 1,000 |
ZAR 50,000 |
ZAR 10,000 |
|
Coupon (semi-annual payment): |
3.15% |
0.50% |
4.21% |
|
Listing: |
Luxembourg |
Saving lives through Vaccine Bonds
IFFIm vaccine bonds provide investors the unique opportunity to invest their savings and help save the lives of children in developing countries by supporting immunisation, health systems strengthening and vaccine procurement programs.
Funds raised by the issuance of the bonds will be used to support health and immunisation programmes in the world’s poorest countries through the GAVI Alliance.
In its first decade, the GAVI Alliance has helped immunise more than 326 million children and save more than 5.5 million lives by accelerating access to immunisation.
The GAVI Alliance, with IFFIm’s support, is now working to save an additional 3.9 million lives as part of the effort under the United Nations Millennium Development Goals to reduce child mortality two-thirds by 2015.
IFFIm is supported by the governments of the United Kingdom, France, Italy, Spain, Australia, the Netherlands, Sweden, Norway and South Africa, which have pledged to contribute long-term financial support. The proceeds of these pledges are used, among other things, to repay the initial investments plus return.
“Through IFFIm’s vaccine bonds, Japanese investors have helped support the critically important work of immunising millions of children in the world’s poorest countries through the GAVI Alliance,” says IFFIm Chair René Karsenti. “IFFIm is an extremely efficient and innovative way to promote this cause.”
Kenichi Tatsuzawa, Chief Executive Officer, HSBC Securities (Japan) Limited said, “We are delighted to once again have the opportunity to support IFFIm in offering this bond to Japanese investors nationwide. This issue highlights Japanese investors’ strong interest in helping to contribute to improvements in health and social conditions in some of the world’s poorest economies.”
The bonds are scheduled to be available at the following distributors (listed alphabetically) during the respective offer periods:
Offer period: 1 June – 27 June 2012
3-year fixed-rate South African rand-denominated bond, a 4.5-year fixed-rate Australian dollar-denominated bond
Awa Securities Co., Ltd., Banyo Securities Co., Ltd., Ichiyoshi Securities Co., Ltd., Imamura Securities Co., Ltd., Rakuten Securities, Inc., Shinwa Securities Co., Ltd., Toyo Securities Co., Ltd., Yamawa Securities Co., Ltd.
Offer period: 4 June – 27 June 2012
15-year South African rand-denominated deep-discount bond
Ando Securities Co., Ltd
About the HSBC Group
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,200 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, the Middle East and Africa. With assets of US$2,556bn at 31 December 2011, HSBC is one of the world’s largest banking and financial services organisations.
About the GAVI Alliance
The GAVI Alliance is a Geneva-base public-private partnership committed to saving children's lives and protecting people's health by increasing access to immunisation in the world’s poorest countries. The Alliance brings together developing country and donor governments, the World Health Organization, UNICEF, the World Bank, the vaccine industry in both industrialised and developing countries, research and technical agencies, civil society, the Bill & Melinda Gates Foundation and other private philanthropists.
About IFFIm
The International Finance Facility for Immunisation Company (IFFIm) was initiated in 2006 to rapidly accelerate the availability and predictability of funds for immunisation. IFFIm sells bonds in the capital markets to raise funds for the GAVI Alliance, a public-private partnership which works to save children’s lives and protect people’s health by increasing access to vaccination in developing countries. The World Bank is IFFIm’s treasury manager. IFFIm has been rated Aaa (stable outlook)by Moody’s Investor Service, AAA (negative outlook) by Fitch Ratings, and AA+ (negative outlook) by Standard & Poor’s, based on support from its donors, the United Kingdom, France, Italy, Spain, Australia, the Netherlands, Sweden, Norway and South Africa.
About the World Bank
The World Bank is a global development cooperative owned by 188member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their national economies and to find effective solutions to pressing regional and global problems in economic development and environmental sustainability. The goal is to help overcome poverty and improve standards of living for people worldwide. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody's/S&P), is the oldest and largest entity in the World Bank Group and provides funding, risk management tools and credit enhancement to sovereigns. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is also the Treasury Manager for IFFIm. In that capacity, the World Bank, as IFFIm's agent, manages IFFIm's finances according to prudent policies and standards. This includes IFFIm's funding strategy and its implementation in the capital markets, rating agency and investor outreach, hedging transactions and investment management. The World Bank also coordinates with IFFIm's donors and manages their pledges and payments as well as IFFIm's disbursements for immunisation and health programmes through the GAVI Alliance.
Disclaimer
The securities referred to in this document have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or under the securities legislation of any state of the United States, and may not be offered or sold in the United States, other than pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. IFFIm does not presently intend to make a public offer of securities in the United States or to register any securities under the Securities Act. The securities referred to in this document will only be offered or sold outside the United States in offshore transactions in reliance on Regulation S under the Securities Act.
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