IFFIm issues US$ 700 million in 3-year floating rate Vaccine Bonds

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Funding to increase immunisation of children in the poorest countries

London, 27 June 2013 – The International Finance Facility for Immunisation Company (IFFIm) today announced its inaugural US dollar floating rate benchmark. The US$ 700 million, 3-year Vaccine Bonds provide investors an opportunity to fund immunisation programmes by the GAVI Alliance, helping protect millions of children in the world's poorest countries against preventable diseases.

This is IFFIm’s first visit to the US dollar benchmark market since 2006, and it is only IFFIm’s second visit to the public dollar markets overall. The bond was lead managed by Daiwa Capital Markets and Deutsche Bank. The issue maturing on 5 July 2016 has a re-offer of 100% and carries a quarterly coupon of +19 basis points over the 3-month USD Libor rate.

“IFFIm's Vaccine Bonds prove that investments can both make financial sense and have a social impact by saving lives,” says IFFIm Chair René Karsenti. "As we celebrate this week the 50th anniversary of the first ever international bond issue, Vaccine Bonds are an example of the formidable evolution of the international bond markets, providing effective financing tools for social impact."

The bonds were oversubscribed and successfully placed with investors around the world, despite volatile market conditions. The well-diversified distribution was as follows: 38% of the bonds were sold to investors based in Europe, 34% in the US, 14% in Latin America, and 14% in the Middle East and Africa. Central banks / official institutions took 52%, asset managers 19%, banks and private banks 16%, pension funds and insurance companies 7%, and corporates 6% of the transaction.

Quotes from Investors:  

"We are pleased to see IFFIm return to the capital markets," says Stephen M. Liberatore, CFA, Managing Director at TIAA-CREF. “This transaction provides an opportunity for investors to align their principles and investments through a security with a clear and measurable social benefit. As a floating rate note, it illustrates the on-going evolution of socially responsible securities to meet current market conditions."

“For us, this is the perfect high social-impact investment, says Benjamin Bailey, Fixed Income Manager, Praxis Mutual Funds. “You’re helping immunize millions of children through an investment that fits comfortably in our mutual fund portfolio. What could be better than that?”

“IFFIm is a highly-rated borrower that fits our investment needs in terms of credit quality and maturity at a fair price," says Urs Thomann, Head of Treasury at Eurofima. "In addition, the funds will be used to vaccinate children around the world, which is an excellent purpose.”

“IFFIm represents a unique approach to financing for development, and Intesa Sanpaolo Group - as a responsible actor of the economic, social and cultural growth - is pleased to grant its support to this relevant initiative,” says a spokesperson in external relations at the banking group Intesa Sanpaolo. “We are proud of joining a new way of funding international development through IFFIm for GAVI programmes, along with the World Bank, the World Health Organization, UNICEF and all the other institutional and private donors.”

Quotes from Lead Managers:  

“This was an exceptional transaction, both in terms of the rarity and desirability of the name, and in terms of the success it achieved in what was a very challenging market environment,” says Christopher Brown, Head of Fixed Income at Daiwa Capital Markets. “The upsizing of the deal from the initially expected US$ 500 million amount to US$ 700 million reflected the fact that the order book was of the highest quality. We congratulate IFFIm on an extremely successful transaction. Daiwa has had a long-standing relationship with IFFIm and has worked on a number of issues, including the borrower's first 'Vaccine Bond' in the Japanese market issued in 2008. Our institution has always believed strongly in the mission of IFFIm.”

"Deutsche Bank is honoured to work again with IFFIm on helping GAVI in its mission to increase the availability of vaccines and immunisation for children,” says Bill Northfield, Head of SSA Origination at Deutsche Bank. “The success of IFFIm’s debut US dollar floating rate note benchmark is an endorsement of the commitment and professionalism of IFFIm and the World Bank, and more broadly of the involvement of private sector capital in development finance. We are pleased with the quality and breadth of global investor demand, with many investors similar to those for more frequent supranational issuance, alongside institutional investors attracted to IFFIm's public health mission. The oversubscribed order book enabled IFFIm to increase the bond's notional amount and price at the tighter end of the official price guidance.”

IFFIm raises funds in the international capital markets to accelerate the availability of funds for immunisation programmes and health system strengthening by the GAVI Alliance. 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.

From its inception in 2006 up until today’s announcement, IFFIm had already raised about US$ 3.85 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.

Summary Terms of the Vaccine Bonds  


International Finance Facility for Immunisation Company (IFFIm)

Issuer rating:

Aa1 / AA+ / AA+


US$ 700 million

Pricing Date

26 June 2013

Settlement date:

3 July 2013

Maturity date:

5 July 2016


3-month USD LIBOR +0.19%

Coupon Payment Dates


Issue price:



Luxembourg Stock Exchange

Joint lead managers:

Daiwa Capital Markets, Deutsche Bank


XS0949331291 (RegS) / US45951B2A63 (144A)

These materials are not an offer for sale of securities. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. The issuer does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States. Any offering of securities will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the issuer and management, as well as financial statements.

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