The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Securitization: A steadier stream of health initiatives

A new borrower is using securitization technology to help save lives.

The International Finance Facility for Immunization (IFFIm) is a rare example of the capital markets being used in a direct attempt to ameliorate health conditions. Its proponents suggest the IFFIm will dramatically boost money provided to meet the much-vaunted Millennium Development Goals.

Officially unveiled in mid September, the initiative finances a programme of large-scale immunization against disease in developing countries. It uses a securitization vehicle, IFFIm, which is backed by part of its expected future income stream – mainly a series of future conditional annual donations by various governments.

This scheme will front-load aid to the Global Alliance for Vaccines and Immunization (Gavi) by leveraging long-term donor commitments. Principal and interest payments on the bonds will be repaid by future donor payment streams.

It will go to the capital markets within the next three to five months for its first deal and borrow as much as $4 billion over the next two to three years. "The timing will be subject to finalizing the few outstanding technical issuers and the negotiations with potential donors," says a UK Treasury spokesperson.

It is clear that the most likely method of selling the bonds will be a syndication.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree