DFC and Citi Risk Management Solution Helps Gavi Strengthen Foundations of COVAX Facility – World
DFC funding for vaccine-related efforts now totals nearly $ 600 million committed during Biden administration
US International Development Finance Corporation, in collaboration with Citi, launches risk management solution for COVAX Facility
Help insure against risk in 9 self-funded countries participating in COVAX
COVAX aims to provide fair and equitable access to COVID-19 vaccines for all countries of the world
Washington, New York and Geneva, September 22, 2021 – The American International Development Finance (DFC), in collaboration with Citi, today announced that it is providing a risk management solution to Gavi, the Vaccine Alliance (Gavi), to mitigate risks and overcome barriers with governments funding COVID-19 vaccine purchases through the COVAX facility. One of the many actions unveiled at the US COVID-19 summit and highlighted by the White House, this risk management partnership embodies the collective and global action that will be needed to face and end the COVID-19 pandemic .
DFC’s support will help Gavi’s efforts to pre-purchase up to 2 billion vaccines directly from manufacturers and to distribute those vaccines quickly and fairly around the world. DFC’s funding will provide protection against political risks in nine self-funded countries – in Latin and Central America, the Middle East and Eastern Europe – participating in COVAX, covering a total of more than $ 383 million in assurance.
“DFC is proud to partner with Citi and Gavi on this important insurance facility, which builds on President Biden’s leadership to end the pandemic and expands DFC’s strategy to increase vaccine manufacturing capacity in Africa and the Indo-Pacific, ”said David, COO of DFC. Marchick. “The insurance transactions announced today on the sidelines of the President’s COVID summit will enable rapid distribution of COVID-19 vaccines, advancing vaccine equity around the world. “
“The urgent mission of the COVAX facility is to accelerate the availability of COVID-19 vaccines worldwide, especially in countries and regions that are struggling to acquire enough doses to protect their populations,” said Gavi CEO Dr Seth Berkley. “The risk management solution provided by the US International Development Finance Corporation will strengthen COVAX’s ability to continue this mission, and we are grateful to DFC, the US government and Citi for this important support.
Citi Export & Agency Finance acted as the sole financial advisor throughout the stages of establishing the political risk insurance framework for Gavi. “Citi is honored to work with DFC and Gavi on this very important COVID-19 mobilization effort,” said Jay Collins, vice president of banking, capital markets and consulting at Citi. “We are excited about the opportunity to support our partners at DFC and Gavi to help design and implement a risk management solution to build more capacity and enable more equitable, fair and timely access to COVID vaccines- 19 across the world, especially by developing countries. . “
Linklaters LLP provided legal advice to Gavi on the DFC risk management solution.
The COVID-19 pandemic continues to disproportionately affect low- and middle-income countries, which struggle to access COVID vaccines. Studies show that the global economic recovery is threatened unless vaccines are more equitably manufactured and distributed in developing countries. Co-led by Gavi, the Coalition for Epidemic Preparedness Innovations (CEPI) and the World Health Organization (WHO), COVAX aims to provide fair and equitable access to COVID-19 vaccines for all countries around the world. Promoting equitable access to safe and effective vaccines around the world is not only the right thing to do, but also a smart and protective step for global health and safety.
Under President Biden’s leadership, DFC’s financial tools are driving the growth of vaccine manufacturing capacity in multiple regions, with multiple technologies, and in countries large and small. Already, DFC’s partnerships with Aspen in South Africa, IPD in Senegal and Biological E., Ltd. in India are expected to facilitate the expansion of manufacturing capacity to nearly 2 billion doses of COVID-19 vaccine globally by the end of 2022, with more projects in the pipeline.
The insurance operations of the DFC in support of Gavi and COVAX fall under the competence of the agency. Health and Prosperity Initiative, through which DFC aims to catalyze $ 5 billion in investments in support of resilience in global health. The initiative includes a call for proposals from private sector entities seeking support from DFCs for health-related investments in developing countries, including projects that support the global response to COVID-19.
Today’s COVID-19 summit is an important step to help provide the momentum the global community needs to be successful in the fight against COVID-19. In the first 9 months of the Biden administration, DFC committed nearly $ 600 million for COVID-related investments, more than four times the agency’s five-year average for all healthcare investments. DFC looks forward to supporting other future partnerships and projects that will continue to help spur collective global action to end the pandemic.
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Notes to Editors
US International Development Finance Corporation (DFC) is the development bank of the United States. DFC partners with the private sector to fund solutions to the most critical challenges facing the developing world today. We invest in all sectors, including energy, health, critical infrastructure and technology. DFC also provides finance to small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights and workers’ rights.
COVAX, the vaccine pillar of the Access to the COVID-19 Tools (ACT) accelerator, is co-led by CEPI, Gavi and WHO – working in partnership with UNICEF and PAHO as delivery partners, vaccine manufacturers in developed and developing countries, the World Bank and others. It is the only global initiative that works with governments and manufacturers to ensure that COVID-19 vaccines are available worldwide for high-income and low-income countries.
Gavi’s role in COVAX
Gavi leads large-scale procurement and delivery for COVAX: design and manage the COVAX installation and the Gavi COVAX AMC and working with its traditional Alliance partners, UNICEF and WHO, as well as with governments, on country preparedness and execution. As part of this role, Gavi hosts the Office of the COVAX Facility to coordinate the operation and governance of the mechanism as a whole, maintains financial and legal relationships with 193 participants in the Facility and manages the operations and governance of the facility as a whole. COVAX Facility transaction portfolio: negotiation of advance purchase agreements with the manufacturers of promising vaccine candidates to secure doses on behalf of all participants of the COVAX platform. Gavi is also coordinating the design, operationalization and fundraising for the Gavi COVAX AMC, the mechanism that provides access to donor-funded doses of vaccine to 92 low-income economies. As part of this work, Gavi provides funding and oversight for UNICEF vaccine procurement and delivery to all AMC participants – operationalizing advance purchase agreements between Gavi and manufacturers. – as well as support to partners and governments for preparation and delivery. This includes tailor-made support to governments, UNICEF, WHO and other partners for cold chain equipment, technical assistance, syringes, vehicles and other aspects of extremely complex logistics operation for delivery. Gavi also co-designed, raised funds and supported the operationalization of the AMC’s no-fault compensation mechanism as good as COVAX humanitarian stamp.
About Gavi, the Vaccine Alliance
Gavi, the Vaccine Alliance is a public-private partnership that helps immunize half of the world’s children against some of the world’s deadliest diseases. Since its inception in 2000, Gavi has helped immunize an entire generation – over 822 million children – and averted more than 14 million deaths, helping to halve child mortality in 73 low-income countries. Gavi also plays a key role in improving global health security by supporting health systems and funding global stocks of vaccines against Ebola, cholera, meningitis and yellow fever. After two decades of progress, Gavi is now focused on protecting the next generation and reaching the unvaccinated children still left behind, using innovative financing and the latest technology – from drones to biometrics – to save millions. more lives, preventing epidemics before they can spread. and help countries on the road to self-sufficiency. Learn more about www.gavi.org and connect with us on Facebook and Twitter.
The Vaccine Alliance brings together developing countries and donor governments, the World Health Organization, UNICEF, the World Bank, the vaccine industry, technical agencies, civil society, the Bill & Melinda Gates Foundation and other private sector partners. View the full list of donor governments and other leading organizations funding Gavi’s work here.
Citi, the world’s largest bank, has approximately 200 million accounts receivable and operates in more than 160 countries and jurisdictions. Citi provides consumers, businesses, governments and institutions with a wide range of financial products and services, including consumer banking and credit, business and investment banking, securities brokerage, wealth management and transaction services. Additional information can be found at www.citigroup.com | Twitter: @Citi | Youtube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi
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Nina Das, Citi Media
Jeff Weintraub, Gavi