The sale of a bond to fund life-saving vaccines for millions of children in poor countries found strong demand on Tuesday, according to World Bank Press Review.
Investment bank Goldman Sachs, which jointly led the sale with Deutsche Bank, said they received bids worth 1.75 times the amount of securities on offer.
Proceeds from the sale of bonds up to 1 billion dollars (knap 6 milliarder kr.) will go the World Bank administered International Finance Facility for Immunization (IFFIm) and fund a massive expansion in vaccine projects.
Britain is leading governments, including France and Italy, promising $4 billion over 20 years to the GAVI Alliance, a group set up by the Microsoft founder Bill Gates to vaccinate against diseases like polio, hepatitis B and yellow fever.
By selling debt backed by their pledges, the governments allow GAVI to spend the money right away. Chancellor of the Exchequer of Britain, Gordon Brown wants to use the bond market in this way to provide $50 billion a year of aid.
The IFFIm will sell the securities and collect payments by the governments. GAVI says that the funds will save 10 million lives in countries from Afghanistan to Zambia.
Kilde: www.worldbank.org
