www.gavi.org

INNOVATIVE FINANCE:

HELPING SAVEMORE LIVESPaolo SisonDirector, Innovative Finance

Tbilisi International Solidarity and Innovative Financing Forum16-18 December 2015

#vaccineswork

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GAVI’S PARTNERSHIP MODEL

Building on the comparative advantages of both public and private partners to achieve Gavi’s mission:

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To save children’s lives and protect people’s health by increasing equitable use of vaccines in lower income countries

INNOVATIVE APPROACHES

Finding innovative solutions to immunisation challenges: core to Gavi’s business model

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Innovative finance: more money for health and more health for the money:

IFFIm vaccine bonds

Strategic private sector partnerships / Gavi Matching Fund

Ensure reliable market for vaccines in developing countries

Advance Market Commitment (AMC) Accelerating affordable supply of appropriate vaccines

Collaboration with private sector to identify and acquire core business skills to improve vaccine delivery

Lions Clubs: commitment to eradicate measles and rubella

Raising finances Shaping vaccine markets Vaccine delivery

INTERNATIONAL FINANCE FACILITY FOR IMMUNISATION (IFFIm)

Created in 2006 to rapidly accelerate availability and predictability of funds for immunisation, helps Gavi to:

• Scale up vaccination programmes quickly

• Secure long-term visibility and predictable funding

• Provide Gavi with operational cash flow flexibility

• Provide market shaping potential

HOW IFFIm WORKS

Immunisationprogrammes

Government donorsLong-term financial pledges

Capital market investors

Bonds $$$

$$$

IFFIm: BUILDING PARNTERSHIPS ACROSS COUNTRIES, DONORS & INVESTORS

73 World’s poorest countries 9 Donor countries 31 bond transactions

Eurobond

Global benchmark

Kangaroo

Uridashi

Islamic finance

United Kingdom

France

Italy

Norway

Australia

Spain

The Netherlands

Sweden

South Africa

Islamic finance

U.S. dollar ($)

Euro (€)

Australian dollar (A$)

Turkish lira ( )₺

South African rand (R)

Brazilian real (R$)

Japanese yen (¥)

The Result

IFFIm’s IMPACT: PENTAVALENT VACCINE

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Helped establish pentavalent programme by financing >90% of initial vaccines

Gavi now able to procure pentavalent vaccines for as low as only $1.19 a dose

Total IFFIm support now at US$ 1.3 billion

The issue IFFIm’s contribution

~ 14.5 million children immunised

~ 207,000 future deaths prevented (2006-2013)

All 73 Gavi countries have introduced pentavalent vaccine

Five diseases kill ~1 million people every year

• diphtheria• tetanus• pertussis• Hib• hepatitis B

IFFIm EXPANDS INTO SUKUK MARKET

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Inaugural sukuk of US$500m issued on 27 Nov 2014

• Largest sukuk al-murabaha issuance in public markets

• Largest inaugural sukuk by a supranational

• First socially responsible sharia-compliant financing to save children’s lives

Second sukuk of US$ 200m issued on 17 Sep 2015

Success of sukuks have afforded Gavi increased engagement and visibility in the Middle East

POTENTIAL FUTURE ROLES FOR IFFIm

The Gavi Secretariat, IFFIm Board, and IFFIm donors have been engaging in a strategic exploration around:

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• How IFFIm’s capabilities could better enable Gavi’s 2016-20 strategy

• Areas could include further scale-up of vaccines, solutions for strengthening market-shaping, supporting strategic focus areas and funding rapid responses to unforeseen events

RECOGNITION OF IFFIm BY GLOBAL COMMUNITY

IFFIm’s unique role was recognised by the global community at the UN Third International Conference on Financing for Development in Addis Ababa on July 2015:

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We encourage consideration of how existing mechanisms, such as the International Finance Facility for Immunisation might be replicated to address broader development need.

LESSONS LEARNED

• Importance of political commitment amongst the donor community, close collaboration between partners, and a rigorous design process

• Recognition that innovation may sometimes not be creating new structures but rather leveraging existing mechanisms in new ways

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FUTURE INNOVATIVE FINANCE IN GAVI

• In addition to its existing mechanisms, Gavi is constantly exploring potential new innovative finance products

• Recent concepts under consideration have included:• Donor-related ideas• New investment products• Private sector partnerships• Sovereign-led initiatives

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www.gavi.org

THANK YOU

#vaccineswork

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