A worker arranges Hepatitis-A vaccines for packing at Sinovac Biotech Co. Ltd. headquarters in Beijing November 24, 2005. China's State Food and Drug Administration has approved the commencement of human clinical trials for Sinovac's Pandemic Influenza (bird flu) vaccine prototype, the company announced on its website. REUTERS/Claro Cortes IV - RTR1BLNY

The World Bank is issuing $425 million in pandemic bonds and derivatives

$425 million

The World Bank is issuing $425 million in “pandemic bonds” and “pandemic derivatives,” to help poor countries fight infectious diseases—and allow investors to place bets on future outbreaks.

Published   |  Photo by Reuters/Claro Cortes IV
A worker arranges Hepatitis-A vaccines for packing at Sinovac Biotech Co. Ltd. headquarters in Beijing November 24, 2005. China's State Food and Drug Administration has approved the commencement of human clinical trials for Sinovac's Pandemic Influenza (bird flu) vaccine prototype, the company announced on its website. REUTERS/Claro Cortes IV - RTR1BLNY
$425 million

Bond purchasers would receive a steady stream of payments, but only until a specific pandemic breaks out. If and when that happens, future payouts would be used to fight the outbreak.

A worker arranges Hepatitis-A vaccines for packing at Sinovac Biotech Co. Ltd. headquarters in Beijing November 24, 2005. China's State Food and Drug Administration has approved the commencement of human clinical trials for Sinovac's Pandemic Influenza (bird flu) vaccine prototype, the company announced on its website. REUTERS/Claro Cortes IV - RTR1BLNY
$425 million

International responses to health crises are often slow. So the World Bank’s goal is to create a pool of money that can be quickly mobilized to fight an outbreak.

A worker arranges Hepatitis-A vaccines for packing at Sinovac Biotech Co. Ltd. headquarters in Beijing November 24, 2005. China's State Food and Drug Administration has approved the commencement of human clinical trials for Sinovac's Pandemic Influenza (bird flu) vaccine prototype, the company announced on its website. REUTERS/Claro Cortes IV - RTR1BLNY
$425 million

The bonds are tied to specific pandemics, including influenza, SARS, and Lassa fever.

Published

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