08 Jul 2020 15:22

SEB facilitates issuance of bond for covid-19 vaccine

Photo by Louis Reed on Unsplash

SEB has together with Credit Agricole CIB arranged the issuance of a vaccine bond of  2 billion Norwegian kroner. The money will be used to accelerate the development of a covid-19 vaccine.

It is the Norwegian state that has committed to contributing 2 billion kroner over a ten-year period to support the organisation CEPI’s, (Coalition for Epidemic Preparedness Innovation) work on developing a functioning vaccine.

However, the entire sum will become available immediately through the issuance of a vaccine bond that allows investors to contribute to the development. The bond is issued by the International Finance Facility for Immunization, IFFF, in collaboration with the World Bank and the Global Vaccine Alliance Gavi.

“A covid-19 vaccine is crucial in order to reactivate our economies and societies. Through this innovative collaboration between private and public actors, the money becomes immediately available to researchers, says Susanne Gløersen, Head of Climate & Sustainable Finance at SEB in Norway.

CEPI was initiated in 2017 in the aftermath of the Ebola crisis. 

The money raised through the IFFF bond funds research programs with the goal of accelerating the development of selected vaccine candidates. The goal is to be able to launch a covid-19 vaccine within the next 12-18 months.

“To solve the challenges facing the world, we need mechanisms to divert capital to areas where they are needed most. We are proud to have contributed to the growth of a sustainable financial market, which is really gaining momentum by area, says Christopher Flensborg, Head of Climate & Sustainable Finance in SEB.