DFC and Citi Risk Management Solution Helps Gavi Strengthen the Foundations of the COVAX Facility

U.S. International Development Finance Corporation (DFC), in conjunction with Citi, today announced it is providing a risk management solution to Gavi, the Vaccine Alliance (Gavi), to mitigate risk and overcome financial hurdles with governments that are funding COVID-19 vaccine purchases through the COVAX Facility. One of many actions unveiled at the U.S. COVID-19 Summit and highlighted by the White House, this risk management partnership embodies the collective and global action that will be required to address and end the COVID-19 pandemic.

DFC support will help Gavi’s efforts to pre-purchase up to 2 billion vaccines directly from manufacturers and allocate these vaccines rapidly and equitably throughout the world. DFC’s financing will offer protection against political risks in nine self-financing countries – across Latin and Central America, the Middle East, and Eastern Europe – participating in COVAX, covering a total amount of more than $383 million in insurance.

“DFC is proud to partner with Citi and Gavi on this important insurance facility, which builds upon President Biden’s leadership to end the pandemic and expands DFC’s strategy to boost vaccine manufacturing capacity in Africa and the Indo-Pacific,” said DFC’s Chief Operating Officer David Marchick. “The insurance transactions announced today on the margins of the President’s COVID summit will allow for the rapid distribution of COVID-19 vaccines, advancing vaccine equity throughout the world.”

“The COVAX Facility’s urgent mission is to accelerate the availability of COVID-19 vaccines to the entire world, particularly to countries and regions that struggle to acquire enough doses to protect their populations,” said Gavi CEO Dr. Seth Berkley. “The risk management solution provided by the U.S. International Development Finance Corporation will strengthen COVAX’s ability to pursue that mission, and we are grateful to DFC, the U.S. government and Citi for that important support.”

Citi’s 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 effort in mobilization against COVID-19,” said Jay Collins, Vice Chairman of Banking, Capital Markets and Advisory at Citi. “We are delighted with the opportunity to support our partners at DFC and Gavi to help design and implement a risk management solution to create more capacity and enable greater equitable, fair and timely access to COVID-19 vaccines across the globe, particularly by developing countries.”