IFFIm successfully prices its inaugural benchmark in Australian Dollars
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- IFFIm successfully prices its inaugural benchmark in Australian Dollars
IFFIm successfully prices its inaugural benchmark in Australian Dollars
November 23, 2010
The International Finance Facility for Immunisation Company (IFFIm) prices its inaugural Australian dollar benchmark, providing investors with a unique opportunity to help protect millions of children in the world's poorest countries against preventable diseases.
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The International Finance Facility for Immunisation Company (IFFIm) prices its inaugural Australian dollar benchmark, providing investors with a unique opportunity to help protect millions of children in the world's poorest countries against preventable diseases
THIS DOCUMENT IS NOT AN OFFER FOR THE SALE OF SECURITIES. THIS DOCUMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, IN OR INTO, DIRECTLY OR INDIRECTLY, THE UNITED STATES
Sydney, 23 November 2010 - The International Finance Facility for Immunisation Company (IFFIm) today priced its inaugural Australian dollar benchmark. The AUD 400 million, five-year bonds provide investors with a unique opportunity to help protect millions of children in the world's poorest countries against preventable diseases.
We are extremely pleased that the transaction was received with great enthusiasm by such a diverse group of investors that seized the opportunity to purchase IFFIm bonds.
Alan Gillespie, Chairman, IFFIm Board
This most recent offering from IFFIm demonstrates institutional investors' continued support for IFFIm and its humanitarian purpose. IFFIm raises funds that are used by the GAVI Alliance to save children's lives and protect people's health by increasing access to immunisation in developing countries.
Alan R. Gillespie, Chairman of IFFIm's Board, said: "This new offering introduces IFFIm as a benchmark issuer in another market - the Australian Dollar market. It follows IFFIm's debut in the USD benchmark market in 2006, its institutional GBP offering in 2009, and a series of bonds for institutional and retail investors in Japan and the UK."
"We are extremely pleased that the transaction was received with great enthusiasm by such a diverse group of investors that seized the opportunity to purchase IFFIm bonds, while enabling IFFIm to deliver cost-efficient financing for much needed immunisation programmes in the poorest countries through the GAVI Alliance."
IFFIm's inaugural AUD 400 million transaction was lead managed by the Commonwealth Bank of Australia and RBC Capital Markets. Co-managers were: Australia and New Zealand Bank, TD Securities and Westpac Institutional Bank. The notes are rated AAA/Aaa/AAA by Standard and Poor's, Moody's Investor Services and Fitch Ratings and are expected to be accepted as General Collateral with the Reserve Bank of Australia.
The issue has a 5.75% coupon, payable semi-annually with a re-offer yield of 5.995%, and equates to a spread of 76bps over the ACGB April 2015 bond. The issue price is 98.955%. IFFIm's inaugural Australian bond will mature on 8th December 2015 with settlement scheduled for 8th December 2010.
Broad range of investors
The notes were placed with a broad range of investors globally with over 20 investors in the transaction. The distribution of investors by region was as follows: Australia 76%, Asia 14%, US 6%, and Europe 4%. By investor type, the distribution was: 44% financial institutions, 43% fund managers, 9% official institutions and 4% with other investors.
The inaugural transaction was preceded by an investor roadshow that IFFIm, the GAVI Alliance and the World Bank (IFFIm's Treasury Manager) undertook in Asia and Australia in October.
IFFIm is supported by donor contributions from the government of the United Kingdom, France, Italy, Norway, Spain, The Netherlands, Sweden and South Africa, with Australia expected to join later this year.
Since it was created in 2000, the GAVI Alliance has assisted more than 70 countries to immunise more than 288 million children and prevent more than five million premature deaths.
"This transaction has successfully established IFFIm among its peer group of multilateral development institutions in the Australian benchmark market," said Doris Herrera-Pol, Director and Head of Global Capital Markets at the World Bank. "Investors ranged from large institutional investors common to similar transactions for supranationals, to investors interested mainly in IFFIm due to its purpose of financing grants for health and immunisation projects in developing countries."
"The World Bank appreciates the support from the Australian and international investor community, and is grateful for the opportunity to contribute to GAVI's fundraising for immunisation programmes through its role as IFFIm's Treasury Manager."
Joint Lead Managers' comments:
"The successful debut of IFFIm in the AUD Kangaroo bond market is a testament to the innovative financing function IFFIm provides in supporting the GAVI Alliance with direct funding for vaccines to the developing world," said David Hancock, Head of Debt and Equity Capital Markets, Commonwealth Bank of Australia.
"The Australian investor community appreciated that with the market rate financial return comes an even greater social return, by providing funding directly to child immunization programmes in the world's 70 poorest countries. The Commonwealth Bank was honored to have worked alongside professionals from IFFIm, GAVI Alliance, the World Bank and RBC to bring about this exceptional outcome."
"RBC is honoured and pleased to be appointed to work on such an important endeavour. IFFIm's debut Kangaroo benchmark comes on the heels of Australia's decision to join the list of donors, highlighting the great strides this very innovative organization has made since its inception in 2006," said Enrico Massi, Managing Director and Head of Debt Capital Markets, Asia-Pacific, RBC Capital Markets. "It's rare that any financial transaction provides such a direct link to making a positive contribution to the world, and that we were able to deliver the funds at a competitive level is a testament to all the investor development work that has been done by IFFIm and the World Bank."
The International Finance Facility for Immunisation Company (IFFIm) is a multilateral development institution created to accelerate the availability of predictable, long-term funds for health and immunisation programmes through the GAVI Alliance (formerly the Global Alliance for Vaccines and Immunisation) in 70 of the poorest countries around the world.
IFFIm was created as a development financing tool to help the international community achieve the Millennium Development Goals. IFFIm's financial base consists of legally binding grants payments from its sovereign sponsors (France, Italy, Norway, South Africa, Spain, Sweden and the UK), on the basis of which IFFIm's is rated AAA/Aaa/AAA (Fitch/Moody's/S&P). The World Bank is the Treasury Manager for IFFIm. IFFIm was established as a charity with the Charity Commission for England and Wales and is registered in England and Wales as a company limited by guarantee with number 5857343 and as a charity with number 1115413.
About the GAVI Alliance
The GAVI Alliance is a public-private partnership that aims to immunise children and strengthen health systems in the world's poorest countries. It brings together developing country and donor governments, the World Health Organization, UNICEF, the World Bank, the vaccine industry in both industrialised and developing countries, research and technical agencies, NGOs, the Bill & Melinda Gates Foundation and private philanthropists. GAVI provides vaccines against diphtheria, tetanus, pertussis combined with haemophilus influenzae type b and hepatitis B as so-called pentavalent (five antigens in one vaccine) as well as vaccines against measles, yellow fever, pneumococcal diseases (pneumonia and meningitis) and rotavirus (diarrhoea).
About the World Bank
The World Bank is a global development cooperative owned by 185 member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their national economies and to find effective solutions to pressing regional and global problems in economic development and environmental sustainability. The goal is to help overcome poverty and improve standards of living for people worldwide. The International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA (Moody's/S&P), is the oldest and largest entity in the World Bank Group and provides funding, risk management tools and credit enhancement to sovereigns. To fund this activity, IBRD has been issuing debt securities in the international capital markets for 60 years. The World Bank is also the Treasury Manager for IFFIm. In that capacity, the World Bank, as IFFIm's agent, manages IFFIm's finances according to prudent policies and standards. This includes IFFIm's funding strategy and its implementation in the capital markets, rating agency and investor outreach, hedging transactions and investment management. The World Bank also coordinates with IFFIm's donors and manages their pledges and payments as well as IFFIm's disbursements for immunisation and health programmes through the GAVI Alliance.