Supranationals – non-Europe

204 EuroWeek Financing supranationals and agencies

$ bn

0.0

0.4

0.2

0.6

0.8

1.0

Maturity profile - USD benchmarks

Source: International Finance Facility for Immunisation (as at March 23, 2010)

2011

2012

2013

2014

2024

Investor base by category (2009)

Source: International Finance Facility for Immunisation

Institutional

Retail

34%

66%

Total$1.1bn

RATING Aaa, AAA, AAA

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. To date, IFFIm has raised more than $2.3bn for GAVI programmes. The World Bank is IFFIm’s treasury manager.

Minimum size: $5m (flexible)

Structure: plain vanilla

Currency: any

Overview

Private PlaCeMent POliCy

Outstanding issuance by currency

Source: International Finance Facility for Immunisation (as at March 23, 2010)

AUD

GBP

NZD

USD

ZAR

5.1%

16.5%

3.7%

45.6%

29.0%

Total$2.42bn

Investor base by region (2009)

Source: International Finance Facility for Immunisation

Europe

Japan64% 36%Total

$1.1bn

Debt issuance programme

* ForecastSource: International Finance Facility for Immunisation

2006

2007

2008

2009

2010

*0.0

0.2

0.4

0.6

0.8

1.0

1.2

Maturity PrOfile

inveStOr baSe by CategOry (2009)

OutStanding iSSuanCe by CurrenCy

inveStOr baSe by regiOn (2009)

debt iSSuanCe PrOgraMMe

International Finance Facility for Immunisation Company (IFFIm)

Pricing date: February 25, 2010value: ZAR2.5bnMaturity date: March 27, 2013Coupon: 7.15%bookrunners: Daiwa Capital Markets

Pricing date: May 6, 2009value: £250mMaturity date: May 15, 2014Offer price: 99.435Coupon: 3.375%Spread to benchmark: 100bp over 5% Sep 2014 Giltbookrunners: HSBC, RBSSource: Dealogic

MOSt reCent dealS

Pos. bookrunner Parents

deal value $ (Proceeds) (m)

no. %share

1 HSBC 340 5 34.3

2 Daiwa 322 1 32.5

3 RBS 185 1 18.7

4 Mitsubishi UFJ 144 2 14.5Subtotal 991 8 100.0total 991 8 100.0

Source: Dealogic

tOP bOOkrunnerS aPril 2009 – MarCh 2010

fitch ratingsAAA, outlook affirmed at stable (Mar 4, 2008)

The AAA rating remains supported by strong donor commitment to IFFIm and the agency’s role in supporting immunisation and vaccine procurement programmes through the Global Alliance for Vaccines and Immunisation (GAVI).

IFFIm funds immunisation and vaccine procurement programmes by issuing bonds in the capital markets backed by grant commitments from the governments of the UK, France, Italy, Spain, Sweden, Norway and South Africa. Sovereign donors and IFFIm consider the grant commitments to be legally binding and, in Fitch’s opinion, repudiation of these commitments would impose severe reputational damage. In a clear indication of ongoing support, the French government signed a second grant agreement in late December 2007 for €867m over 20 years.

IFFIm’s total resource base (not discounted) comprising grant commitments over the next 20 years has consequently increased to the equivalent of $5.3bn, from $4bn. The South African government also committed $20m over 20 years in March 2007 although Fitch does not recognise this as part of IFFIm’s resource base for the purpose of assessing its AAA status because of the lower credit quality of the South African sovereign.

key reCent rating agenCy COMMentary

204-205 IFFlm.indd 204 06/05/2010 12:41

Supranationals – non-Europe

Financing supranationals and agencies EuroWeek 205

United Kingdom £1.38bn

France €1.24bn

Italy €473m

Spain €190m

Sweden Skr276m

Norway $27m

South Africa $20m

The Netherlands €80m

total $5.3bn

Source: International Finance Facility for Immunisation (as at December 31, 2009)

Standard & Poor’s

AAA, negative outlook

Strengths• Highly rated shareholders• Politically compelling mandate• Conservative financial policies• Highly professional financial management

weaknesses• Reliance on the political commitment of shareholders remaining intact over the life of the programme• Reliance on poor countries avoiding protracted arrears to the International Monetary Fund

S&P revised its outlook on IFFIm to negative on May 21, 2009, as a consequence of its revision of the outlook on the AAA rating on the UK to negative on the same day. The current long-term rating on IFFIm reflects S&P’s expectation that donor countries will meet their commitments and that important large donors such as the UK and France will remain rated AAA.

It also reflects S&P’s expectation that IBRD will perform its tasks as treasury manager competently and that the protracted arrears to the IMF of the 70 IFFIm-eligible countries – especially in the latter years of IFFIm’s activities – will not substantially exceed expectations based upon historical experience. If these assumptions do not hold, downward pressure on the rating would build.

key reCent rating agenCy COMMentary

risk weighting (basel ii): 0%

riSk weighting

alan r gillespie Chairman

Outstanding grants distribution by type

Source: International Finance Facility for Immunisation (as at December 31, 2009)

6%

12%

9%

4%

14%2%

53%

Yellow fever stockpile

Polio stockpile campaign

Measles, mumps & rubella (MMR)

Maternal & neonatal campaign (MNT)

Health systems strengthening

Meningitis (MNG)

Core GAVI immunisation

Total$1.56bn

key OffiCialS OutStanding grantS diStributiOn by tyPe

Sovereign pledges $2.74bnOther $0.19bntotal assets $2.93bn

Source: International Finance Facility for Immunisation (as at December 31, 2008)

tOtal SOvereign PledgeS

CaPital StruCture

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