INVESTING IN PUBLIC HEALTH FOR THE LONG TERM

The Motivation

Every year some 24 million children in developing countries miss out on vaccinations against common diseases, making them vulnerable to sickness, disability and death. Approximately 2.3 million children die from easily-preventable diseases such as diphtheria, pneumonia, diarrhoea and yellow fever.

One of the reasons for this global failure is a lack of predictable, long-term funding that allows developing countries to plan and implement programmes to protect and improve children’s health.

The Opportunity

In May 2009, leading charity fund manager CCLA announced the purchase of £3.5 million of a new five-year bond issued by The International Finance Facility for Immunisation (IFFIm), a registered charity whose aim is to accelerate the availability and predictability of funds for immunisation.

The bond is issued on the strength of legally binding pledges from the UK government, as well as France, Italy, Spain, Sweden, Norway and South Africa to contribute $5.3 billion to IFFIm over a 20-year period.

CCLA’s Fixed Interest and Cash Manager Stuart Freeman said, "We appreciate the transparent social mission of the IFFIm, and it is also a rare AAA rated issuer. The new sterling bond was attractively priced and it provides further diversification for our clients and fits in well with our current fixed interest strategy. It helps our clients make money while also making a difference.”

The Impact

The funds raised by IFFIm are used by the GAVI Alliance, a public-private partnership which provides funds to purchase and deliver vaccines and strengthen health services in 72 of the world’s poorest countries. The bond provides a continued funding stream for these organisations, essential for long-term disease control. 

Provided by CCLA