IFFIm issues US$ 300 million in 3-year floating rate Vaccine Bonds

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Funding to support immunisation of children in the poorest countries

London, 9 November 2017 – The International Finance Facility for Immunisation Company (IFFIm) today priced a US dollar floating rate benchmark bond issuance. The US$ 300 million, 3-year Vaccine Bonds provide investors an opportunity to fund immunisation programmes by Gavi, the Vaccine Alliance (Gavi), helping protect millions of children in the world's poorest countries against preventable diseases.

This marks IFFIm’s first visit to the international US dollar benchmark market this year, and it re-establishes IFFIm as regular borrower in the market, following its US$ 500 million 3-year floating rate note issued in October 2016. Today’s issuance was lead managed by Citi, Crédit Agricole and Goldman Sachs International. The issue maturing on 16 November 2020 has a re-offer of 100% and carries a quarterly coupon of +13 basis points over the 3-month USD Libor rate.

IFFIm funds – approximately US$ 2.6 billion to-date — have accelerated delivery of vaccines, helping vaccinate 640 million children and saving more than nine million lives in communities across Africa and Asia. Gavi uses economies of scale to drive down the prices of vaccines for the world's poorest countries. Gavi-supported countries pay less than US$ 40 for the full recommended course of 11 vaccines, compared with the U.S. market price of more than US$ 900.

“This transaction is yet another opportunity in IFFIm's 11-year history for investors to put their money to work in support of Gavi's efforts to increase access to life-saving vaccines in developing countries," said IFFIm Board Chair René Karsenti. “IFFIm's Vaccine Bonds are the consummate example of how investors can do good for the world, even as they do well with a solid investment."

"For over a decade IFFIm's vaccine bonds have helped to protect millions of children in the world's poorest countries from deadly diseases," said Dr. Seth Berkley, CEO of Gavi, the Vaccine Alliance. "The funds raised with this issuance will be put to work helping to ensure that children in those countries have access to life-saving vaccines."

“It is a privilege to bring a new IFFIm bond to the market. This USD FRN transaction is a great opportunity for investors: they benefit from a highly-rated name that diversifies their portfolios. At the same time, they make an impact by directing their funds to the life-saving vaccination programs IFFIm supports,” said Arunma Oteh, Vice President and Treasurer of the World Bank, IFFIm’s Treasury Manager. “It is an excellent example of how all of us – investors, financial partners, and issuers alike – are utilizing the capital markets to support socially beneficial initiatives that improve lives.”

The mandate for a new US$ 300 million minimum 3-year FRN transaction was announced in Europe on the morning of Tuesday, 7 November with the intention to organise a global investor call the following day. Immediately after the call organised at 8.30 am EST / 1.30 pm UK / 2.30 pm CET on Wednesday, 8 November, IFFIm started taking indications of interest (IOIs) with initial price thoughts of 3mL$+13 bps area. Books were officially opened in London on Thursday morning with the initial guidance of 3m$L+13bps area, in line with initial price thoughts. By mid-morning New York time, the book was oversubscribed for the targeted transaction size with orders exceeding US$ 300 million at the final spread of 3m$L+13bps.

The diversified and high quality distribution of the orderbook reflects the appeal of the IFFIm mission with global investors: Europe accounted for 57%, followed by Americas with 17% and Middle East and Africa with 13%, and Asia with 13%. Central banks and official institutions took 70%, banks 27% and asset managers 3%.

Quotes from Lead Managers:

"The theme of ESG investing is capturing investor attention across the globe with social bonds becoming more prominent as investors think about the wider range of the Sustainable Development Goals. With IFFIm’s vaccine bonds, the capital markets are helping to save lives by financing vaccination programs in the world’s poorest countries. IFFIm is a pure play humanitarian issuer and the uniqueness of the credit is reflected in the quality of the orderbook and fine pricing on today’s new issue. We were delighted to be involved,” said Philip Brown, Managing Director, Head of Public Sector & SRI Debt Capital Markets at Citi.

"IFFIm is both the de facto longest standing social bond issuer and one addressing one of the most pressing social needs on Earth, which give all children access to vaccination. Many investors in this trade were attracted by its important social content. We are immensely proud to have assisted IFFIm in this success,” said Tanguy Claquin, Head of Sustainable Banking at Crédit Agricole.

“This was an important transaction reaffirming IFFIm’s standing as a top-quality credit in the SSA market and we were thrilled to be involved. With spreads having tightened significantly over the past year, the positioning of the credit was key in this exercise and it is noteworthy that the transaction priced a full 13bps tighter than last year’s 3-year FRN transaction. IFFIm’s mission is incredibly important to investors and the support for the transaction clearly reflects this,” said Lars Humble, Managing Director, Head of SSA Syndicate at Goldman Sachs International.

IFFIm raises funds in the international capital markets to accelerate the availability of funds for immunisation programmes and health system strengthening by Gavi, the Vaccine Alliance. IFFIm’s financial base consists of legally binding grant payments (approximately US$ 6.5 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 more than US$ 6 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$ 300 million


Pricing Date

9 November 2017

Settlement date:

16 November 2017


Maturity date:

16 November 2020


Coupon / Re-offer Spread:

3-month USD LIBOR +13 bps

Coupon Payment Dates:

16th of each February, May, August and November, commencing on 16th February 2018


Issue price:




Luxembourg Stock Exchange


Joint lead managers:

Citi, Crédit Agricole CIB, Goldman Sachs International


ISIN / Common Code:

XS1718500884 / 171850088


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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