IFFIm issues NOK 2 billion in Vaccine Bonds for COVID-19 vaccine development

IFFIm issues NOK 2 billion in Vaccine Bonds for COVID-19 vaccine development

7 July 2020

IFFIm has issued NOK 2 billion in Vaccine Bonds to accelerate the availability of financing for urgent COVID-19 vaccine research and development by the Coalition for Epidemic Preparedness Innovations.

IFFIm has issued NOK 2 billion in Vaccine Bonds to accelerate the availability of financing for urgent COVID-19 vaccine research and development by the Coalition for Epidemic Preparedness Innovations

London, 7 July 2020 – The International Finance Facility for Immunisation (IFFIm) has issued NOK 2 billion in zero coupon amortising Vaccine Bonds to accelerate the availability of financing for urgent COVID-19 vaccine research and development by the Coalition for Epidemic Preparedness Innovations (CEPI). The Vaccine Bonds will leverage that funding against a 10-year, NOK 2 billion commitment from the Kingdom of Norway announced in March through Gavi, the Vaccine Alliance to CEPI.

Today’s issuance was managed by Crédit Agricole CIB and Skandinaviska Enskilda Banken (SEB). The bond, which will mature on 5 April 2030, has a reoffer price of 94.92, +22bps above the NOK mid-swap. The bonds were bought by investors from Europe as well as Asia.

CEPI, the public-private initiative based in Oslo whose mission is to accelerate the development of vaccines that immunise against emerging infectious diseases, has made an urgent call for US$ 2 billion, which will allow CEPI to maximise the number of viable COVID-19 vaccine candidates and bolster their clinical trials.

“Since 2006, IFFIm has been an indispensable part of Gavi’s success, making essential funding for vaccine programmes available when it could have the greatest impact,” said Dr Seth Berkley, CEO of Gavi. “Now, building on our long, highly productive partnership with Norway, we are applying this proven innovative finance tool to produce safe and effective vaccines that could be a game changer in the fight against one of the greatest global health threats in more than a century.”

Today’s transaction marks IFFIm’s 36th issuance and its second bond in Norwegian kroner following a 2019 Vaccine Bond that raised NOK 600 million for CEPI.

“We are delighted that Norway has turned to IFFIm and the use of Vaccine Bonds to expedite funding for the development of a COVID-19 vaccine,” said IFFIm Board Chair Cyrus Ardalan. “In doing so Norway is extending its long-standing commitment in promoting the use of vaccines to help accelerate CEPI’s response to the COVID-19 pandemic and save more lives.”

“With this transaction, investors are making a direct impact and addressing the most urgent need of our time, fighting COVID-19. Financing for partners like CEPI and Gavi is instrumental in helping developing countries respond to the pandemic,” said Jingdong Hua, Vice President and Treasurer of the World Bank, IFFIm’s Treasury Manager.

“We are at a critical stage in the global fight against this pandemic. Being able to make use of this kind of innovative financing will enhance CEPI’s ability to operate and as such represents an important step forward in our efforts to deliver a safe, effective and globally accessible COVID-19 vaccine as quickly as possible,” said Richard Hatchett, CEO of CEPI.

“Dai-ichi Life would be pleased to support CEPI through IFFIm in response to the COVID-19 pandemic. As a responsible institutional investor, Dai-ichi Life has been promoting ESG investments to contribute to creating a sustainable society. We hope our investment will help CEPI accelerate the development of COVID-19 vaccine,” said Kenjiro Okazaki, General Manager, Global Fixed Income Investment Department, Dai-ichi Life. 

 “We are proud to invest in this bond and thereby contribute to solving the global health issues through the accelerated vaccine funding structure that IFFIm offers,” said Bjarne Lien Kamsvåg, Head of Fixed Income at Equinor Asset Management ASA.

“For our local currency mandates, we prefer the combination of currency exposure with a superb credit quality that gives us full transparency in sustainable funding,” said Theodor Kirschner, Portfolio Manager at Capitulum Asset Management GmbH.

IFFIm issues bonds in the international capital markets to accelerate the availability of funds for immunisation programmes and health system strengthening. IFFIm’s financial base consists of legally binding grant payments (approximately US$ 6.8 billion) from its ten sovereign donors. The World Bank is IFFIm’s Treasury Manager.

From its inception in 2006 until today’s announcement, IFFIm had already raised nearly US$ 6.2 billion equivalent on 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.

IFFIm funds — approximately US$ 2.8 billion to-date— have accelerated funding for vaccines and have helped Gavi vaccinate more than 760 million children and save more than 13 million lives. IFFIm is widely regarded as a pioneering social bond issuer, and Vaccines Bonds have enjoyed strong demand from socially responsible investors due to the clarity and focus of Gavi’s mission.

Quotes from Lead Managers

Crédit Agricole CIB is proud, honoured and privileged to have participated in the inaugural IFFIm NOK 2 billion COVID-19 Vaccine Bond, the only issue from a pure player where the full proceeds will support CEPI, through Gavi, the Vaccine Alliance, in the development of a COVID-19 vaccine, which is currently in the hearts and minds of the entire world population. This transaction highlights IFFIm’s critical role in saving lives and reflects the highest of social impacts.” Tanguy Claquin, Global Head of Sustainable Banking at Crédit Agricole CIB

"The collaboration between Norway, IFFIm, CEPI, Gavi and the World Bank - is in its own unique way opening doors for activating private capital towards societal challenges. The investor dialogues we experienced on the back of this transaction clearly show how transactions like these move investors to be more alert on the opportunities financial markets have in sourcing capital towards specific challenges.” John Turesson Managing Director, SEB Norway

Summary Terms of the Vaccine Bonds


International Finance Facility for Immunisation Company

Issuer rating:

AA-/Aa1/AA (Fitch/Moody’s/S&P)



Aggregate Nominal Amount:

NOK 2 billion

Pricing Date:

25 June 2020

Settlement Date:

7 July 2020

Maturity Date:

5 April 2030




10% each April 5, starting from year 2021

Re-offer Price:


Re-Offer spread:

NOK Mid-Swap + 22bps


Luxembourg Stock Exchange

Joint lead manager:

Crédit Agricole, SEB

ISIN/Common Code:

ISIN XS2198205184/Common Code 219820518


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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