> UPDATE 15 | OCTOBER 2020

Donors make historic commitments to IFFIm Pledges secure IFFIm’s Gavi/2019/Ojwok future as a flexible funding source for Gavi

When the coronavirus pandemic forced Gavi’s highly anticipated 4 June 2020 replenishment conference to move online, it was a timely reminder of the necessity and urgency of vaccines in an uncertain world. Yet in the shadow of the worst public health crisis in a century, global leaders remotely addressed the world and made historic commitments to provide equal access to vaccines for all.

Girls in Tabitha Clinic field visit, Kenya, November 2019.

“Investing in IFFIm is V. Loebell Gavi/2020/Benedikt smart and of added value help Gavi meet its ambitious 2021 to to global health security.” 2025 strategic goals. “This is a historic moment for Gavi and Kitty van der Heijden, IFFIm,” said Cyrus Ardalan, IFFIm Board Director-General for International Chair. “With the new pledges, IFFIm has Cooperation for the Netherlands greatly exceeded its replenishment goals. The strong and continuing support from During the Global Vaccine Summit, donors ensures IFFIm’s ability to remain leaders from Italy, the Netherlands, a vital part of Gavi’s financial structure Norway and Spain announced pledges into the future. IFFIm will serve Gavi in totalling US$926 million in new, its next funding cycle to provide equal long-term funding to IFFIm – part of access to vaccines for all.” a total of $8.8 billion raised overall for Dr Seth Berkley, CEO of Gavi, said: Gavi’s core immunisation programmes. “It’s heartening to see how many The support ensures IFFIm’s financial countries affirmed Gavi’s mission through Gavi’s successful Global Vaccine Summit, hosted by the UK, was held virtually on 4 June strength for years to come, enabling their generous donations to IFFIm, which 2020. L to R: Jen Copestake, Seth Berkley, CEO, the innovative social bond pioneer to continued on next page > Gavi, the Vaccine Alliance.

> ALSO IN THIS ISSUE:

3 6 7 IFFIm helps Q&A with IFFIm supports Gavi respond new IFFIm new typhoid to COVID-19 board member conjugate vaccines Jessica Pulay

IFFIm supporting Gavi 1 Update 15 | October 2020 continued from previous page > Gavi/2020/Jacques Schmitz Gavi/2020/Jacques will enable Gavi to use Vaccine Bonds to of Spain, addressing Summit viewers. raise flexible funding in the future, where “That is why Gavi’s operation model and when it is needed.” is exemplary. It combines the needs of Over the next five years, Gavi aims to developing countries with the know- immunise another 300 million children how of international organisations and in lower-income countries. The new experience of the private sector.” support will also help meet the challenge During the Summit, leaders recognised of the coronavirus pandemic by IFFIm’s model as an instrument that accelerating access to COVID-19 vaccines could surge funding to address the and strengthening health systems. COVID-19 pandemic. “Ensuring equitable access to vaccines is “IFFIm is well positioned to play a a multilateral responsibility,” said Pedro critical role in the growing response Behind the scenes at the Global Vaccine Sánchez Pérez-Castejón, Prime Minister to the biggest health crisis of the last Summit 2020 in London. century,” said Kitty van der Heijden, Director-General for International of funding for CEPI, the Coalition for Cooperation for the Netherlands. “The Epidemic Preparedness Innovations, Netherlands recognises that, more than which is on the front lines of developing ever, investing in IFFIm is smart and of vaccines against COVID-19. added value to global health security.” “The crisis we are in now requires IFFIm Vaccine Bonds are already resources on a massive scale,” said Dag- helping fund coronavirus vaccine Inge Ulstein, Norwegian Development Pedro Sánchez Dag-Inge Ulstein, research. Based on a long-term Minister addressing participants in an Pérez-Castejón, Norwegian commitment from Norway, IFFIm and IFFIm video. “This is what IFFIm was Prime Minister of Development Spain. Minister. Gavi have accelerated the availability designed to do.”

> WHAT IS IFFIm?

The International Finance Facility for institutional and individual investors. The is IFFIm’s treasury Immunisation (IFFIm) was initiated money supports vaccine programmes manager. IFFIm’s in 2006 to rapidly accelerate the of Gavi, the Vaccine Alliance, a public- donors comprise Australia, Brazil, availability and predictability of private partnership that works to save France, Italy, the Netherlands, funds for immunisation. IFFIm uses children’s lives and protect people’s health Norway, South Africa, Spain, Sweden, government pledges to support the by increasing access to immunisation in and the United Kingdom. issuance of Vaccine Bonds sold to developing countries. The World Bank www.iffim.org

Gavi, the Vaccine Alliance is a public-private help countries on the road to self-sufficiency. The World Bank is like a cooperative, made up of partnership that helps vaccinate half the world’s Learn more at www.gavi.org 189 member countries. The World Bank’s goals are children against some of the world’s deadliest to (i) end extreme poverty at the global level within diseases. Since its inception in 2000, Gavi has The Vaccine Alliance brings together a generation and (ii) boost shared prosperity. helped to immunise a whole generation – over developing country and donor governments, The World Bank is also the treasury manager for 822 million children – and prevented more the World Health Organization, UNICEF, the IFFIm. In that capacity, the World Bank manages than 14 million deaths, helping to halve child World Bank, the vaccine industry, technical IFFIm’s finances according to prudent policies and mortality in 73 developing countries. agencies, civil society, the Bill & Melinda Gates standards. This includes IFFIm’s funding strategy Foundation and other private sector partners. and its implementation in the capital markets, Gavi also plays a key role in improving global View the full list of donor governments and rating agency and investor outreach, risk and health security by supporting health systems other leading organizations that fund Gavi’s investment management. The World Bank also as well as funding global stockpiles for Ebola, work here. coordinates with IFFIm’s donors and manages cholera, meningitis and yellow fever vaccines. their pledges and payments as well as IFFIm’s www.gavi.org disbursements for immunisation and health After two decades of progress, Gavi is now programmes through Gavi, the Vaccine Alliance. focused on protecting the next generation and www.worldbank.org reaching the unvaccinated children still being left behind, employing innovative finance For further information please contact: For further information please contact: and the latest technology – from drones Paolo Sison Beniamin Carcani to biometrics – to save millions more lives, Gavi, the Vaccine Alliance The World Bank prevent outbreaks before they can spread and Tel: +1 202 478 7998 Tel: +1 202 473 5468

IFFIm supporting Gavi 2 Update 15 | October 2020 IFFIm helps Gavi respond to COVID-19

Coronavirus has upended health, Gavi COVAX AMC therapeutics, vaccines and health security and economies all over the In addition to providing emergency system strengthening. Gavi, CEPI and globe, but the poorest countries in assistance for health systems fighting WHO, together with multinational the world face the greatest challenges the COVID-19 pandemic, Gavi is and developing country vaccine – and gravest risks. Lower-income an active partner in the Access to manufacturers, are working on the countries with fragile health systems COVID-19 Tools (ACT) Accelerator. vaccine pillar to develop COVAX, a are struggling to control outbreaks The ACT Accelerator brings together global risk-sharing mechanism for pooled of coronavirus, and Gavi, the World governments, international health procurement and equitable distribution Health Organization (WHO) and organizations, scientists, businesses, of eventual COVID-19 vaccines. UNICEF have warned that 80 million civil society, and philanthropists with In order to ensure vaccine supplies children under the age of one are for lower-income countries and lower- at risk of missing out on vaccines middle income countries, Gavi also due to COVID-19’s disruption of launched, as part of COVAX, a financing routine immunisation, threatening “Only the global availability mechanism called the Gavi COVAX the resurgence of deadly diseases like of a vaccine will allow us to Advance Market Commitment (AMC). measles, polio and diphtheria. break this epidemic’s cycle, The Gavi COVAX AMC is funded by With expertise in vaccines and a wide and this in turn requires overseas development assistance with network of public and private partners, an urgent and enormous an initial fundraising target of $2 billion Gavi is playing a central role in the to immunise health care workers and amount of funding.” global response to COVID-19. IFFIm other high-risk individuals and create a is providing some of the immediate, Doris Herrera-Pol, IFFIm board member flexible buffer of doses to be deployed flexible funding Gavi will need for its where they are needed most. “Only COVID-19 initiatives – and is prepared a shared goal: to end the pandemic as the global availability of a vaccine will to do more. quickly as possible by supporting the allow us to break this epidemic’s cycle, development and equitable distribution and this in turn requires an urgent and Supporting CEPI of the diagnostics, vaccines, and enormous amount of funding,” said IFFIm and Gavi are making IFFIm’s treatments the world needs. IFFIm board member Doris Herrera-Pol. proven and powerful frontloading The ACT Accelerator will help guarantee “Initial funding is needed to research mechanism available to CEPI. Launched access to substantial volumes of vaccines and develop vaccine candidates, and in 2017 to accelerate the development for all countries – especially those with too when an effective and safe vaccine is of vaccines against deadly diseases. few resources to afford them. found, funding will be needed to roll it CEPI is now on the front lines of There are four “pillars” within out. And IFFIm will be ready to answer COVID-19 vaccine research. Its goal the ACT Accelerator: diagnostics, the call.”

for a COVID-19 vaccine is to cut Queensland of University the of courtesy Photo development time for new vaccines from the historic norm of 10 to 15 years to a record 12 to 18 months, or less. So far, CEPI has raised US$1.4 billion of the $2 billion it estimates it needs to encourage the research and development of COVID-19 vaccines, a process that is now well underway. Part of CEPI’s COVID-19 programme funding came from IFFIm’s July 2020 Vaccine Bond issuance totalling NOK 2 billion, backed by a new long- term pledge from the Norwegian government. When needed, IFFIm can deploy funding at scale that accelerates the development of vaccine candidates and supports Gavi’s work to strengthen the health systems necessary to deliver them at scale. COVID-19 lab (CEPI research).

IFFIm supporting Gavi 3 Update 15 | October 2020 Gavi prioritises health system strengthening Assured funding from IFFIm Tissandier Gavi/2019/Frederique is helping Gavi respond to health systems crisis

The world will be grappling with coronavirus for some time to come – as well as the uncertainty of a fast-moving epidemic. As part of its multi-pronged response, Gavi has made available US$200 million in immediate funding for health system strengthening (HSS) as health infrastructures around the globe face new problems due to coronavirus. IFFIm, a longtime supporter of HSS, has disbursed $338 million to Gavi’s HSS programme since 2006. And as a Gavi’s flexible funding resource, IFFIm can provide assured funding, if and when it is needed, to help Gavi respond quickly Dr Seth Berkley, CEO of Gavi (left), meets with representatives from the WHO during a field visit to to evolving needs for stronger health the Democratic Republic of Congo during the National Forum for Ebola Eradication in July 2019. systems around the world. in health coverage and equity for 31 is battling simultaneous cholera, measles Gavi and IFFIm chart HSS countries. Gavi also procured and and yellow fever outbreaks. progress installed a record amount of cold chain Over the last 20 years, Gavi has equipment, which had the result of Zero-dose children and health helped countries improve their health increasing the number of cold chain workers at risk systems and broaden vaccine coverage, equipment suppliers from six to eight Between 2000 and 2018, the number of confronting challenges such as climate and a drop in average prices. That’s children in Gavi-supported countries who change, urbanisation, human migration a great example of how Gavi shapes received a full course of routine vaccines and conflict. markets for the greater public good. grew by more than 50%. However, more than 10 million children still do not Health systems strain under receive a single dose of basic vaccines the weight of COVID-19 every year. The number of “zero-dose” “COVID-19 has But now, a deadly challenge has children has remained stubbornly static caused widespread arrived and threatens to disrupt health over the last decade – and could rise disruption of routine care infrastructures in vulnerable significantly during the pandemic. immunisation services.” communities. “COVID-19 has caused widespread SARS-CoV-2, the virus responsible for disruption of routine immunisation Dr Seth Berkley, Gavi CEO COVID-19, has made it to more than services,” said Gavi CEO Dr Seth Berkley in 210 countries and territories as of early a 2019 report to Gavi’s Board of Directors. IFFIm has been involved in Gavi’s health August, with cases and deaths increasing “There is heightened risk of backsliding system strengthening programme from each day. Outbreaks like this are and an increase in the number of zero- the start. In 2006, IFFIm frontloaded inevitable, which is one of the reasons dose and under-immunised children, child more than $150 million to kickstart Gavi’s resilient health systems that can deliver deaths and outbreaks.” investments in health systems, enabling vaccines and other medical interventions Strengthened health systems make it Gavi to improve vaccine coverage and are so important. possible for countries to prevent disease equity in 40 countries. The IFFIm funding Countries in Africa and Asia, even outbreaks that pose a threat to their comprised almost 65% of Gavi’s initial with support from Gavi to grapple with children, protecting millions of others investment for health system and their weak health systems, have been around the world. Without strong health immunisation strengthening during the particularly hard hit. The Democratic systems – infrastructure, institutions, first two years of the programme. Republic of the Congo (DRC), for clinics and trained health workers – Fast forward to 2019: a record year example, is facing multiple outbreaks of developing countries will struggle to for Gavi’s HSS programmes, when it cholera, measles and a new outbreak of address coronavirus, and millions of approved additional improvements Ebola in Equateur province. Ethiopia, too, continued on next page >

IFFIm supporting Gavi 4 Update 15 | October 2020 Gavi/2019/Frederique Tissandier Gavi/2019/Frederique continued from previous page > to the pandemic, as health systems are children could miss routine vaccines, essential to deliver COVID-19 vaccines making them vulnerable to measles, once they are available. diphtheria, polio and dozens of other Recent IFFIm disbursements – preventable diseases. $18.4 million from 2019 to 2020 – are Health care workers – 70% of whom helping strengthen health systems in are women – are on the frontlines of this 12 vulnerable countries today: Uganda, pandemic. Many are working without Liberia, Côte d’Ivoire, the Central African personal protective equipment or Republic, Burkina Faso, Afghanistan, other basic supplies. “Alliance partners, Côte d’Ivoire, Tanzania, India, the including both WHO and UNICEF, have Republic of Kyrgyzstan, Tajikistan and lost invaluable staff to COVID-19 as they Bangladesh. supported the health and well-being of It will take unprecedented resources others,” said Dr Berkley. to mobilise the international response to COVID-19. IFFIm’s ability to provide Flexible funding from IFFIm flexible funding when it is needed will support Gavi’s HSS ensures Gavi is ready to respond to programmes unforeseen emergencies and make A health worker immunises a child during the measles vaccine launch in Ethiopia in 2019. IFFIm’s strong past support for HSS has robust health systems a priority for the The MCV2 vaccine protects against measles, helped pave the way for a rapid response world’s hard-to-reach communities. rubella and mumps.

A Q&A with outgoing IFFIm board member Marcus Fedder The art of innovative finance

Read the full interview at iffim.org What did you learn about IFFIm’s Gavi’s impact from visits to Gavi supported pentavalent How did IFFIm evolve during your countries? programme. Wherever you go in Gavi-supported When you board service? Marcus Fedder. When I joined the board, I was really countries, pentavalent vaccines are can put interested in the innovative structure. a high priority. IFFIm funded more money on From my work in microfinance, than 90% of the initial vaccine cost for the table, it gives you a stronger particularly in Cambodia, I knew how negotiating power. Gavi nowadays crucially important vaccination is for procures these vaccines for US$0.938 the poorest people at the bottom of Profile a shot – a price drop of more than the pyramid. Marcus Fedder served as an 69% since 2010. Around the time I joined, IFFIm IFFIm board member from 2013 was changing from being the key to 2019, bringing experience in Has your creative work as a painter provider of funding for Gavi to both global development and influenced your work in finance? becoming one of Gavi’s financing investment banking to help People working in finance often options as they received significant shepherd IFFIm as it raised have a very short attention span. At contributions from donors in the $2.5 billion over his seven-year least I am suffering from that. But 2015 replenishment. Frontloading, so term. Fedder is currently a when I paint, I can concentrate for a critical in the beginning, looked to be Non-Executive Director of The long time. Well, a long time for my less important for a while. But then Currency Exchange Fund (TCX) standards, certainly not for those of a CEPI was created and in 2019 used and a co-founder of Amnexis, a professional artist. This has definitely IFFIm to frontload Norwegian multi- start-up in the digital med sector. helped me dealing with IFFIm papers year pledges to develop new vaccines He is also an active artist and and long documents. Creativity also against deadly diseases. How timely writer (his latest novel, German helps in thinking of out-of-the-box was that? And now, it is clear that Justice, is out in October). solutions. By the way, the proceeds IFFIm will be needed more than ever His work supports children in from my paintings go to support a to finance vaccination of the poorest Cambodia. charity, Children of the Mekong – in the global fight against COVID-19. www.childrenofthemekong.org

IFFIm supporting Gavi 5 Update 15 | October 2020 Q&A with Jessica Pulay New IFFIm board member talks about innovative finance in a present and post-pandemic world

Where did you grow up? US$2 trillion equivalent serving on other boards in my career – Tell us about your family (230% growth in five across a wide variety of sectors, including and their influences on years) – and other finance, education and the arts – will your career. metrics report total ESG allow me to view topics through a slightly I grew up in London with (Environmental, Social and different lens and will complement the my parents, who each Governance) investments great expertise which already exists came from very different as considerably higher among my IFFIm Board colleagues. backgrounds. My mother than this. This growth has had quite a traditional coincided not only with Can we use lessons learned to rebuild British upbringing, though significantly increased better systems after the pandemic she also studied in France, public awareness of climate subsides? What would that look like? and was a qualified UK Jessica Pulay. risks – but it also reflects an It will take time to process and assess barrister/lawyer, which increasing awareness by the what the long-term impact of this was relatively unusual for a woman in investment community of the benefits of shock will be. What is already horribly the late 1950s and early 1960s. My allocating assets to ESG products. clear is that this crisis has thrown into father arrived in Britain from Austria as Whilst the trend towards ESG sharp relief some of the weaknesses a refugee in 1938, at age 15, with no investments was already developing already prevalent in societies, with money and speaking virtually no English. rapidly, the tragedy of COVID-19 has social inequities becoming even more He eventually became City (Finance) made such products even more relevant, pronounced within nations and across Editor of The Times newspaper and also and the market has grown quickly as the world. How these inequalities are authored two books. I was very lucky in a result. IFFIm’s role as an innovative addressed, how the world can meet that my family background taught me provider of financing to Gavi, as well as the UN’s sustainable development that there were almost no barriers to to CEPI, makes it uniquely positioned to goals, how cities will evolve to take what you could achieve, provided you assist with the urgent need of finding a more account of health issues, how were determined enough and worked vaccine and ensuring it is made as widely technological advances can be hard enough. available as possible. Given the rapid harnessed in ways which best serve My parents both died very young, evolution of investment products to meet societies, and how nations can work however I was immensely fortunate to the demands of these unprecedented across borders to resolve these vast have special godparents – in particular, times, IFFIm is exceptionally well dilemmas: these and other policy issues both my godmothers: inspirational placed to explore the merits of suitable are likely to remain a challenge for the women who have pushed the opportunities and innovations. planet in the decades to come. boundaries in terms of what women can achieve in their chosen fields (in their What strengths and knowledge do you cases, finance and the arts respectively). bring to the board? As a result, I am truly grateful to have It is a particular privilege to have joined Profile these, and other impressive female IFFIm’s board at this unprecedented Jessica Pulay joined the IFFIm role models in my life. I feel a great time and to have a ring-side seat on board in March 2020. Ms. Pulay responsibility to pass on some of that one of the most critical issues facing is currently Co-Head of Policy encouragement to young women who humanity in 2020: namely to assist in and Markets at the UK Debt are embarking on their own careers in funding the process of developing a Management Office (DMO). whatever sector that might be. COVID-19 vaccine, as well as helping Her background in finance disease prevention more generally. I includes the European Bank for What role can socially responsible very much hope to bring my 30+ years Reconstruction and Development investments play in the wake of the of capital markets experience (where (EBRD), Morgan Stanley, pandemic, and beyond? I have specialised in government and Goldman Sachs, and Deutsche Socially responsible investments have supranational financing) to assist the Bank. Based in London, her witnessed enormous growth in the board in this vitally important effort with appointment to the IFFIm board past few years: assets under respect to its Vaccine Bond strategy. In is in a personal capacity. management in funds recently exceeded addition, I hope that my background of

IFFIm supporting Gavi 6 Update 15 | October 2020 IFFIm supports new typhoid conjugate vaccines When the WHO recommended an improved new typhoid vaccine in Young girls (L to R): Sehrish Kanwal (14), Faiza Farooq (14), Noor Saba Jamil (15), Dua Khan (14), Laiba ejaz (13) and Munazza (13) were all immunised against typhoid at Kiran Sitara event at the PAF 2018, Gavi moved quickly to mobilise museum in Karachi. In 2019, Pakistan became the first country to introduce the new Typhoid vaccine. immunisation campaigns in Africa and Asia, where the disease remains of appetite and constipation. Almost In 2017, the World Health endemic in some areas. Because there a third of all cases are among children Organization (WHO) prequalified were no existing programmes for under the age of five. a new typhoid conjugate vaccine. typhoid conjugate vaccines (TCV) prior The new TCV addresses the growth Manufactured by the India-based to the onset of Gavi’s strategic period of strain of typhoid that is resistant to Bharat Biotech, it is the first typhoid in 2016, Gavi relied on IFFIm to fund standard treatments in many parts of vaccine that can be given to children the gap. IFFIm disbursed over US$13.5 the world. The new vaccine had been as young as six months of age, and million to these countries helping save successfully and safely used as part of it confers longer-term protection millions of children from a disease that the outbreak response in Pakistan’s against typhoid. can kill up to 30% of those infected. Sindh Province since April 2019, and Previous typhoid vaccines were not While wealthy countries have virtually with Gavi’s support was introduced effective in children younger than eliminated typhoid, it is still all too into the country’s routine immunisation two. The new typhoid conjugate common in lower-income countries. programme in November 2019. can be effective for longer periods “Typhoid fever imposes a dramatic in children as young as six months. burden on children in the poorest Given a new programme with no nations, affecting countries, communities prior allocated budget, Gavi opened and families,” said Dr Ngozi Okonjo- “This vaccine will be a a funding window in November Iweala, Gavi’s Board Chair. “I lost my lifesaver for millions of 2017 for the vaccine, and IFFIm’s cousin and nearly lost my son because children, especially those financing of more than $13.5 million of typhoid. This vaccine will be a lifesaver living without access to clean enabled countries to introduce the for millions of children, especially those water or sanitation.” vaccine. The new vaccine was first living without access to clean water or Dr Ngozi Okonjo-Iweala, Gavi Board Chair introduced in countries in 2019, with sanitation.” TCV outbreak response campaigns Typhoid, a life-threatening disease “The rise of extreme drug resistant in countries such as Zimbabwe and caused by the bacterium Salmonella typhoid risks bringing us back to Liberia that required flexible funding Typhi, affects 11 to 21 million people levels of mortality not seen since from IFFIm. In November 2019, each year, causing 128,000 to 161,000 the 19th century, posing a risk to all Pakistan became the first country deaths – mainly in sub-Saharan Africa of us,” said Dr Seth Berkley, CEO of in the world to introduce TCV with and South Asia. Symptoms include Gavi. “That’s why typhoid conjugate Gavi support. prolonged fever, headache, nausea, loss vaccine is so important.” “Typhoid is a highly contagious disease that spreads more quickly and easily when people live in crowded Typhoid facts neighborhoods with weak water and sanitation infrastructure,” said Dr. Azra Fazal Pechuho, Pakistan’s Typhoid affects Between Almost a third If untreated, Provincial Minister of Sindh for Health, between 11 128,000 and of all cases are it can kill and Population Welfare. “Typhoid and 21 million 161,000 people among children up to 30% is preventable. Prevention through people a year die from it under five years of those vaccination is one of the most every year of age infected effective interventions to reduce typhoid infections.”

IFFIm supporting Gavi 7 Update 15 | October 2020 In brief: in the news Innovations in Humanitarian Financing Forum mtn-i named IFFIm With COVID-19, the world is witnessing the speed and scale with which a local health challenge can grow into a global crisis. How can public Vaccine Bond and private sectors work together to increase the scale and scope of issuance “Deal of the Year” funding required to proactively address social causes – and potentially The 2019 award, shared by Skandinaviska avert crises from future global threats? Enskilda Banken (SEB) and Toronto-Dominion This question is the focus of the Innovations in Humanitarian Bank, was given in the SRI: Green/Social Financing Forum (IHFF), a roundtable of stakeholders exploring novel category for an IFFIm Vaccine Bond issuance, financial tools and instruments to expand resources for urgent needs backed by a multi-year pledge from Norway, – from health emergencies and education to sanitation, hygiene and that raised 600 million Norwegian Krone climate change. (US$66 million) for CEPI, an approved Gavi Although traditional programme. The winning bond provided humanitarian aid has immediate funding for vaccine research and grown significantly in development to combat diseases like MERS, recent years, gaps in Nipah virus and Lassa fever. funding remain. “The humanitarian sector has an opportunity to look beyond traditional funding to find In brief: new IHFF participants met virtually in May 2020. alternative resources and innovative models to mobilise private capital for emergency inititatives response,” said IHFF Co-Chair and IFFIm Board Chair Cyrus Ardalan. A London Business School study presented to IHFF participants in May 2020 will inform the Forum’s goals. “Humanitarian financing Guarantee facility as we know it today is not adequately equipped to address the The European Investment Bank (EIB) and Gavi frequency and scale of emergencies our world is facing,” said Simon are partnering to design a novel guarantee Meldrum, Innovative Finance Specialist with the British Red Cross and facility, backed by IFFIm’s balance sheet, that IHFF Co-Chair. “COVID-19 has further exposed the fragility of the will free up Gavi’s cash and investment assets current system.” that would otherwise be held as collateral. The new innovative finance instrument, introduced at the Gavi Vaccine Summit in News media highlighted IFFIm in 2020 as a June 2020, could replace pre-payments and ad hoc guarantee mechanisms to achieve solution to financing the pandemic response market shaping objectives. In spring 2020, Board Chair Cyrus The mechanism aims to guarantee Gavi’s Ardalan appeared on Euromoney Live, financial obligations to UNICEF and other AON and ICMA podcasts to discuss the third parties for its procurement of vaccines role of innovative financing in the era for Gavi implementing countries. The new of COVID-19. In June, Mr Ardalan’s facility leverages IFFIm’s long-term assets Op Ed, “Private sector investors must to improve the efficiency and flexibility of now step up to quell the COVID-19 Gavi’s financial commitments. crisis,” appeared in the World Economic The guarantee will be a revolving Forum’s Agenda blog. And in July 2020, mechanism able to accommodate multiple IFFIm Board member Doris Herrera-Pol procurement contracts simultaneously sat for an extensive interview with Frank backing future payments as vaccines are Jackman for Global Capital. “IFFIm’s procured and releasing the guarantees funding support is a concrete example as Gavi fulfils its payment obligations. of the types of responses that can help This mechanism will improve Gavi’s financial us move forward,” she said. “We can do efficiency and enhance its market shaping a lot together as issuers, governments strength, allowing Gavi to purchase more and investors.” Doris Herrera-Pol. vaccines and immunise more children.

IFFIm supporting Gavi 8 Update 15 | October 2020