Guarantee Facility makes $225 million in revolving funds available to Gavi

Guarantee Facility makes $225 million in revolving funds available to Gavi

28 March 2022

A novel Guarantee Facility designed by the European Investment Bank (EIB) and Gavi, and backed by IFFIm, has been set up, with a maximum of US$ 225 million available on a revolving basis. The new innovative financial instrument, first announced at the Gavi Vaccine Summit in 2020, leverages IFFIm’s long-term assets to improve the efficiency and flexibility of Gavi’s financial commitments.

The Guarantee Facility is a revolving mechanism able to accommodate multiple procurement contracts at the same time, backing future payments as vaccines are procured and then releasing the guarantees as Gavi fulfils its payment obligations. This system will improve Gavi’s financial efficiency and strengthen its position in the markets, enabling the Alliance to purchase more vaccines and immunise more children.