Procurement of Global Banking Services

Item Description:

The Global Fund to Fight AIDS, Tuberculosis and Malaria (the “Global Fund”) invites all potential suppliers (the “Bidders”) to submit proposals for the above-captioned Request for Proposal (RFP).

This RFP is comprised of the following sections and attachments:

• Section 1: Terms of Reference
• Section 2: Proposal Requirements and Evaluation
• Section 3: Proposal Submission
• Section 4: Legal Matters
• Annex 1: Certificate of Conformance

The Global Fund is a partnership designed to accelerate the end of AIDS, tuberculosis and malaria as epidemics. As an international organization, the Global Fund mobilizes and invests more than US$4 billion a year to support programs run by local experts in more than 100 countries.

To support its Treasury operations, the Global Fund is seeking Global Banking services.

Background

The Global Fund receives funding (primarily Official Development Assistance) from its donors in all major currencies and makes disbursements to fund programs in more than 100 countries.

As a result of its activities, the Global Fund is exposed to significant foreign exchange exposures, which it actively manages through a comprehensive hedging approach. Some details on the Global Fund’s foreign exchange exposures are available in the Global Fund’s 2020 Annual Report, such as note 5.6 to the financial statements.

As an international organization dedicated to public health and human rights objectives, including attainment of relevant United Nations Sustainable Development Goals, the Global Fund finances programs in countries and regions which are (or may become) subject to evolving sanctions. Some payments may be made in the local currency of the recipient.

In 2014, the Global Fund launched a first RFP for Global Banking Services. The Global Fund’s own grant payments and hedging transactions started in 2015 (following management by the World Bank). In 2016, at the start of its 5^th replenishment campaign (2017-2019), the Global Fund put in place comprehensive hedging of its foreign exchange exposures. In 2022, the Global Fund’s 7^th replenishment conference will be hosted by the Government of the United States, to raise funding to meet announced needs of US$ 18 billion for the period 2023-2025.

In the context of increasing payment and hedging volumes, the Global Fund is aiming to renew, and potentially expand, the range of its banking counterparties for the services included in the scope of work.

The Global Fund works and will continue to work with several banks, to maintain competitive pricing for banking services and individual transactions. Therefore, selection as a counterparty does not bring any.

Scope/Objective

Global banking services covering the Global Fund’s banking needs including:

• Cash management services, including international payments, and the settlement of foreign exchange transactions
• Foreign exchange, including foreign exchange derivative transactions

The Global Fund seeks both.

Tasks

Cash management services include:

• Bank accounts in multiple currencies
• Electronic connectivity for payment orders and reporting, including SWIFT (XML) and e-banking
• Worldwide payments, including payments to jurisdictions that may be subject to international sanctions (provided a license is available)
• Worldwide payments in local currencies
• Short-term credit facility

Foreign exchange services include:

• Trading through an electronic multi-bank platform
• Spot transactions
• Derivative transactions for maturities up to one year
• Availability of credit lines
• Reporting and confirmation capability

The Global Fund is headquartered in Geneva, Switzerland.

For cash management services, the counterparty must be located in a jurisdiction in which the Global Fund enjoys privileges and immunities. These include the United States, and Switzerland.

For foreign exchange services, the counterparty may be located in other jurisdictions, but must be able to trade during standard European trading hours.

Download RFP in English