The social financing story
SEB arranged the issuance of two Covid 19-related bonds
In 2020, covid 19 changed the world as we know it. To help people meet new virus-related challenges, SEB arranged the issuance of two bonds – one to accelerate the development of covid-19 vaccines and one to prevent, detect and respond to the spread of the virus.
Bond for covid-19 vaccine
In July, SEB and Credit Agricole CIB arranged the issuance of a new 2 billion Norwegian kroner bond, to accelerate the development of covid-19 vaccine.
The Norwegian state has committed to contributing 2 billion kroner over a ten-year period to support the organisation CEPI (Coalition for Epidemic Preparedness Innovation) and their work on developing a functioning vaccine. CEPI was initiated in Norway in 2017 in the aftermath of the 2014-2015 Ebola outbreak in west Africa to support the development of vaccines that could improve the world's preparedness against outbreaks of epidemic diseases.
Bond makes the money available immediately
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.
The money raised through the IFFF bond funds research programs with the goal of accelerating the development of selected vaccine candidates.
Raising capital to meet covid-19
During 2020, SEB also has arranged the issuance of a health bond of SEK 11.5 billion. The bond is part of the World Bank's health program with focus on supporting the member states' ability to prevent, detect and respond to the spread of covid-19.
The bond was issued by International Bank for Reconstruction and Development (IBRD), an intergovernmental development bank that is part of the World Bank. SEB was the sole lead arranger of the transaction.
Investors in the bond include Scandinavian and European asset managers, pension and insurance funds as well as companies, central banks and banks.