Islamic Development Bank and IFFIm announce plans to collaborate on private placement
- Press Releases
- Islamic Development Bank and IFFIm announce plans to collaborate on private placement
Islamic Development Bank and IFFIm announce plans to collaborate on private placement
11 December 2018
Sukuk aims to build on Gulf Cooperation Council countries' support for Gavi programmes.
Abu Dhabi, 11 December 2018 – The International Finance Facility for Immunisation (IFFIm) and the Islamic Development Bank Group (IsDB), a development partner of Gavi, the Vaccine Alliance, have announced plans for the IsDB to purchase a Sukuk issued by IFFIm, aimed at accelerating funding for immunisation efforts that save children’s lives in the world’s poorest countries, it was announced in Abu Dhabi today.
Scheduled for early 2019 and subject to final terms and conditions, the Sukuk, a certificate that complies with Islamic financing principles, will be issued by IFFIm and purchased on a privately placed basis by the IsDB as investor. The transaction is being arranged by First Abu Dhabi Bank (FAB).
IFFIm sells Vaccine Bonds and Sukuk on international capital markets to accelerate the availability of funding for Gavi’s life-saving vaccine and health system strengthening programmes. The bonds and Sukuk are supported by legally-binding, long-term grant payments (approximately US$ 6.55 billion) from 10 sovereign donors. The World Bank is IFFIm’s Treasury Manager.
“Gavi is extremely fortunate to have the Islamic Development Bank’s help in giving some of the world’s poorest children access to live-saving vaccines they need to survive and thrive,” said Dr. Seth Berkley, CEO of Gavi. “Our cooperation around the Sukuk is a demonstration of IsDB’s commitment to Gavi’s mission.”
Since its inception in 2000 to the end 2017, the Vaccine Alliance has helped to immunise more than 288 million people in 33 Organisation of Islamic Cooperation (OIC) member states. Gavi’s financial support to these 33 member states totals more than US$ 6 billion as of 30 September 2018. This represents 50% of Gavi’s overall disbursements worldwide.
The IsDB’s mandate includes coordination and financing of the OIC General Secretariat’s engagement with the the World Health Organization (WHO) and other relevant institutions around efforts to combat diseases and epidemics.
“Gavi’s tremendous impact, especially in OIC countries, fits naturally with the IsDB’s strong priority on public health investments,” said Dr. Bandar Hajjar, IsBD’s President. “That’s why we are pleased to support IFFIm’s upcoming Sukuk, which will extend our already-fruitful relationship with Gavi.”
The upcoming Sukuk will be the third for IFFIm in support of Gavi. The first, held in December 2014, raised $500 million, and a second, in September 2015, generated an additional $200 million.
“Our experience with the previous two Sukuk showed that there is immense enthusiasm among Islamic investors for Gavi’s important mission,” said Cyrus Ardalan, Chair of IFFIm’s Board of Directors. “IFFIm is a good fit for socially responsible and Islamic investors, providing both with an opportunity to invest in an area with a clear and significant social purpose – to save children’s lives.”
Andy Cairns, Senior Managing Director and Head of Global Corporate Finance at First Abu Dhabi Bank, commented that “FAB is honored to lead this third Vaccine Sukuk for IFFIm and to have bookrun both prior Vaccine Sukuk. Social responsibility is a cornerstone of Islamic finance, and we are delighted to play a role in facilitating this investment by IsDB, which is so important in helping children in need. FAB congratulates IFFIm and IsDB on this achievement.”
Gulf Cooperation Council (GCC) countries have provided strong and growing support for Gavi’s work. At Gavi’s 2015 pledging conference in Berlin, GCC countries committed to a total of U$ 44 million. Also, Gavi has received funding from His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi (US$ 33 million) in 2011, OPEC Fund for International Development (US$ 1 million) and Majid Al Futtaim Finance (US$ 125,000) in 2013.
The announcement was made during Gavi's mid-term review, held in Abu Dhabi, United Arab Emirates (UAE) on 10-11 December. The high-level conference is celebrating Gavi’s progress and impact in the world’s poorest countries. By the end of 2018, Gavi will have contributed to the immunisation of 700 million people and the prevention of more than 10 million future deaths. This has contributed to an acceleration in the decline of global under-five mortality rates and brought wider impact beyond immunisation.
As well as reviewing progress made since the last Gavi replenishment in Berlin in 2015, this conference is also an opportunity to shape Gavi’s future and help overcome the challenges preventing children from receiving the full course of recommended vaccines. Immunisation is a cost effective and high impact intervention that is core to primary health care and provides a robust platform to deliver better health for all.
This announcement is for information purposes only and is not an offer of securities for sale, or a solicitation of an offer to buy securities. In particular, if issued, the certificates relating to the proposed Sukuk transaction will not be marketed, offered or sold to persons in the Kingdom of Bahrain and the Kingdom of Saudi Arabia until any regulatory clearances are in place.
If issued, the securities referred to herein will be offered and sold in offshore transactions outside the United States in reliance on Regulation S (“Regulation S”) under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities have not been nor will be registered under the Securities Act or any state securities law. These materials may not be distributed within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
If issued, the securities are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the EEA. For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); or (ii) a customer within the meaning of Directive 2002/92/EC (as amended, the “Insurance Mediation Directive”), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II. Consequently, no key information document required by Regulation (EU) No 1286/2014 (as amended the “PRIIPs Regulation”) for offering or selling the securities or otherwise making them available to retail investors in the EEA has been or will be prepared and therefore offering or selling the securities or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.
Within the United Kingdom, this announcement is only distributed to and aimed at: (i) persons who are Investment Professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”); and (ii) persons falling within any of the categories of persons described in Article 49(2) (High net worth companies, unincorporated associations, etc.) of the Financial Promotion Order. Any security, investment or investment activity to which this announcement may relate is only available to, and any invitation, offer, or agreement to engage in such investment activity will be engaged in only with, relevant persons. No other person should rely on it or any of its contents. This announcement is not being addressed to or directed at any individuals in the United Kingdom acting otherwise than in the course of their trade, business or profession. Persons who are not qualified persons should on no account act with regard to or in confidence in this information or its contents.
Restricted Access Library
The material in this Restricted Access Library is intended to be accessed only by persons with residence within the territory of a Member State of the European Union and is not intended to be viewed by any other persons. The material in this Restricted Access Library is provided by IFFIm for information purposes only and the materials contained herein were accurate only as of their respective dates. Certain information in the materials contained herein is not intended to be, and is not, current. IFFIm accepts no obligation to update any material contained herein.
Persons with residence outside the territory of a Member State of the European Union who have access to or consult any materials posted in this Restricted Access Library should refrain from any action in respect of the securities referred to in such materials and are otherwise required to comply with all applicable laws and regulations in their country of residence.
By clicking Access restricted content: DYNAMIC-LINK-TEXT I confirm that I have read and understood the foregoing and agree that I will be bound by the restrictions and conditions set forth on this page.
The materials in this Restricted Access Library are for distribution only to persons who are not a "retail client" within the meaning of section 761G of the Corporations Act 2001 of Australia and are also sophisticated investors, professional investors or other investors in respect of whom disclosure is not required under Part 6D.2 of the Corporations Act 2001 of Australia and, in all cases, in such circumstances as may be permitted by applicable law in any jurisdiction in which an investor may be located.
The materials in this Restricted Access Library and any documents linked from it are not for access or distribution in any jurisdiction where such access or distribution would be illegal. All of the securities referred to in this Restricted Access Library and in the linked documents have been sold and delivered. The information contained herein and therein does not constitute an offer for sale in the United States or in any other country. The securities described herein and therein have not been, and will not be, 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 except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws.
Each person accessing the Restricted Access Library confirms that they are a person who is entitled to do so under all applicable laws, regulations and directives in all applicable jurisdictions. Neither IFFIm nor any of their directors, employees, agents or advisers accepts any liability whatsoever for any loss (including, without limitation, any liability arising from any fault or negligence on the part of IFFIm or its respective directors, employees, agents or advisers) arising from access to Restricted Access Library by any person not entitled to do so.