Alice P. Albright

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IFFIm Update
Alice P. Albright Vice President and CFO, The
GAVI Fund
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Outline

• Snapshot Status of IFFIm
• Donor Commitments
• Overview of 2 new entities and Treasury
  Management
• Funding Strategy
• Next Steps
• Timeline
• Request to the Alliance Board

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Snapshot Status of the IFFIm

• Concluded negotiations with Donors on transaction
  documents
• Significant progress towards defining
  governance/operating platform
• Defined initial program spending requirements
• Developed a funding strategy
• Preparing to go to market in early September

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Donor Commitments
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Schedule of Initial Payment Obligations by Donors
The full amount for Frances obligation will be
reflected in the graph, following parliamentary
authorisation in the 2007 budget. Brazil and
South Africa have agreed to a 1mm per year
profile for 20 years and are not shown in the
graph.
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GAVI FUND AFFILIATE IFFIm
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IFFIm Treasury Operations Will Be Provided by the
World Bank

• The World Bank has been an investor and issuer in
  the international capital markets for the past 60
  years.
• The World Bank manages its finances according to
  conservative policies and standards and will
  ensure that IFFIm conforms to similar standards.
• With its triple-A credit rating, experience, and
  knowledge, the World Bank is well-suited to
  provide services to IFFIm.

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Funding Strategy

• IFFIm will be positioned as a sovereign/supranatio
  nal issuer
• IFFIm expects to raise up to US 4 billion over
  10 years
• First issue will total US 500 million
• Volume, instrument, offering methods will vary
  depending on program needs and market conditions
• Initial placement will be targeted at
  institutional investors

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Immediate Next Steps

• Conclude negotiations on Treasury Management
  Agreement
• Conclude obtaining charity status of IFFIm and
  GAVI Fund Affiliate
• Obtain endorsement of Guiding Principles by GAVI
  Alliance and Fund Boards
• Finalise ratings process
• Determine risk-weighting classification with
  donors
• Finalise legal opinions in respect of Grant
  Agreements
• Finalise prospectus and marketing materials
• Appoint ancillary service providers (agents,
  listing agent, trustee, security trustee, other
  dealers in dealer group)

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Timeline
Next Steps
Target First Issuance

Finalise Formation of entities
Rating Agency Review
Finalise Bond Offering Documentation
Donor Negotiations
Beauty Contest/RFP Process
Pre-Marketing, Investor Calls, Road Show
Launch and Pricing
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Request to the Alliance Board
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