1. www.gavi.org INNOVATIVE FINANCE: HELPING SAVE MORE LIVES Paolo Sison Director, Innovative Finance Tbilisi International Solidarity and Innovative Financing Forum 16-18 December 2015 Page: 1 #vaccineswork Gavi/2012/Doune Porter

2. GAVI’S PARTNERSHIP MODEL Building on the comparative advantages of both public and private partners to achieve Gavi’s mission: 2 To save children’s lives and protect people’s health by increasing equitable use of vaccines in lower income countries

3. INNOVATIVE APPROACHES Finding innovative solutions to immunisation challenges: core to Gavi’s business model 3 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 financesShaping vaccine marketsVaccine delivery

4. 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

5. HOW IFFIm WORKS

6. 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 (¥)

7. The Result IFFIm’s IMPACT: PENTAVALENT VACCINE 7 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 issueIFFIm’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

8. IFFIm EXPANDS INTO SUKUK MARKET 8 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

9. POTENTIAL FUTURE ROLES FOR IFFIm The Gavi Secretariat, IFFIm Board, and IFFIm donors have been engaging in a strategic exploration around: 9 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

10. 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: 10 “ ” We encourage consideration of how existing mechanisms, such as the International Finance Facility for Immunisation might be replicated to address broader development need.

11. 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 11

12. 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 12

13. www.gavi.org THANK YOU 13 #vaccineswork Gavi/2013/Evelyn Hockstein