IFFIm returns to market with £300 million 3-year bond to support global vaccine programs
IFFIm returns to market with £300 million 3-year bond to support global vaccine programs
3 June 2025
Proceeds will fund Gavi’s immunisation initiatives, including HPV and malaria.
London, 3 June 2025 – The International Finance Facility for Immunisation (IFFIm) Company has successfully priced a £300 million, 3-year fixed-rate bond to support global immunisation programs. Today’s transaction represents a remarkable return to the Sterling market after three years, and it now stands as IFFIm’s largest GBP benchmark bond. Proceeds from the bond will support Gavi, the Vaccine Alliance and its programming to deliver routine immunisation in low-income countries and respond to infectious disease outbreaks and emergencies.
The issue was met with significant demand from global investors, especially in the UK, reflecting a broad and continued commitment to socially responsible investments, including global immunisation. Investor participation demonstrated the demand of the global capital markets for IFFIm’s vaccine bonds, particularly with UK-based asset managers and institutional investors in the City of London and from UK’s financial industry.
Maturing on 28 February 2028, the bond carries an annual coupon of 4.25% per annum and an annual re-offer yield of 4.274%. Barclays, NatWest Markets and TD Securities are joint lead managers for the transaction. The World Bank serves as IFFIm’s Treasury Manager.
Dr Sania Nishtar, CEO of Gavi, the Vaccine Alliance, said: “Today’s bond issue highlights the growing appetite among investors for high-quality instruments that combine strong financial performance with measurable social impact – proving how responsible finance can deliver global health and economic resilience.”
IFFIm remains a critical innovative financing tool for Gavi. Since 2006, IFFIm has provided US$ 6.2 billion in funding—accounting for one-sixth of Gavi’s overall programmatic expenditures. These funds have been instrumental in responding to health crises, such as the Ebola outbreak and COVID-19, while also underpinning the confidence of vaccine producers supplying essential commodities in Gavi’s diverse and long-term financial base, strengthening routine immunisation and healthcare systems in lower-income countries.
Ken Lay, Chair of the IFFIm Board, commented: "The strong demand for this bond underscores IFFIm’s diverse investor base, drawn to the importance of our mission: delivering life-saving immunisation to the world’s most vulnerable populations through Gavi, the Vaccine Alliance."
Gavi is concluding its 2021 to 2025 strategic period and preparing for the next phase. This bond issue comes at a critical moment for Gavi, its partners and people they serve. It also reinforces the financial foundation needed to sustain and expand global vaccine programmes.
Jorge Familiar, Vice President & Treasurer of the World Bank, stated: "Today’s successful GBP-denominated bond issuance highlights the strength of public-private partnerships both in the UK and globally in advancing global health initiatives. Since 2006, the World Bank, as IFFIm’s Treasury Manager, has been facilitating IFFIm’s capital market access, underscoring the significant role these markets play.”
The order book exceeded GBP 450 million, the largest GBP order book since IFFIm’s first GBP transaction in 2009. The bond attracted a diverse investor base, including 70% from banks, bank treasuries, and corporates, 19% from asset managers and insurance/pension funds and 11% from central banks and official institutions. Geographically, 88% of investors came from the UK and 12% from Europe, Middle East and Africa respectively.
Lead Manager Quotes
Alex Paterson, Head of SSA DCM, Barclays, said: “Congratulations to IFFIm on an impressive return to the Sterling market with its first GBP-denominated vaccine bond since 2022. The result is a testament to the broad support for IFFIm and Gavi's crucial mission, having helped over one billion children globally and counting. IFFIm has a strong investor following across international markets, but this transaction highlights the particular support and alignment to the UK's own international development goals. Barclays is honoured to have been able to support this important financing.”
Damien Carde, Managing Director, Head of FBG DCM, NatWest, said: "Congratulations to IFFIm on a successful return to the GBP market since their last outing in July 2022. The UK has been a dedicated partner to IFFIm and Gavi since inception, and the depth of demand evidenced in this transaction emphasises the commitment of GBP investors to the central mandate of accelerating development of vaccines and access to immunisation in poor countries. NatWest is honoured to have supported IFFIm with such an important transaction.”
Laura O’Connor, Managing Director, Head of UK DCM, TD Securities, said: "We congratulate IFFIm on an exceptional GBP bond offering. This is yet another example of investors recognising the powerful impact of the IFFIm vehicle and that support is reflected in the impressive demand collected during today's transaction. As always, it is an honor to work alongside the World Bank as IFFIm’s Treasury Manager as IFFIm’s work continues to be crucial.”
Summary Terms of the Vaccine Bonds
| Issuer: | International Finance Facility for Immunisation Company (IFFIm) |
| Issuer Rating: | Aa1/AA/AA- (Moody’s/S&P/Fitch) |
| Format: | Reg S |
| Amount: | GBP 300 million |
| Pricing Date: | 3 June 2025 |
| Settlement Date: | 10 June 2025 |
| Maturity Date: | 28 February 2028 |
| Coupon: | 4.25% payable annually |
| Coupon Payment Dates: | 28 February each year |
| Re-Offer Price: | 99.957% |
| Listing: | Luxembourg Stock Exchange’s Euro MTF Market |
| Joint Lead Managers: | Barclays, NatWest Markets, TD Securities |
| ISIN / Common Code: | XS3091032113 / 309103211 |
Disclaimer
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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