CASE STUDY I FOREIGN EXCHANGE
Helping protect NSW’s livestock industry
Published 6 December 2023
Issue
In 2022, the NSW Government began a 5-year partnership with Tiba Biotech, a biotechnology company specialising in mRNA vaccines, to address emergency animal disease threats. The collaboration focuses on building local mRNA vaccine development capability – including a pilot manufacturing facility – for vaccine prevention of several endemic threats, including Foot and Mouth Disease and Lumpy Skin Disease.
Being fully synthetic, mRNA vaccines do not carry with them the same risks as traditionally derived vaccines. They are not created from animal or microbial products (like current Foot and Mouth Disease vaccines), can be quicker to produce, and are safe and highly effective.
How we helped
Tiba Biotech is a US-based organisation; for the NSW Government to enter this partnership, the Department of Regional NSW (DRNSW) was required to hedge the fees paid, in accordance with NSW Treasury’s Financial Risk Management Policy.
TCorp advised DRNSW on a foreign exchange hedging strategy, to facilitate a series of US dollar payments (over US$2mn) to Tiba Biotech. Early collaboration with TCorp enabled DRNSW to fix the future US dollar cashflows at a known rate, consequently removing any risk associated with fluctuating exchange rates. With payments scheduled from 2023 into 2025, this fixed rate provided budget certainty over the duration of the project and removed any risk that additional funding would be required.
Establishing domestic mRNA vaccine manufacturing capability means NSW can respond more quickly to outbreaks, mitigate the impact of emergency animal diseases through preventative measures, safeguard animal health and the NSW livestock industry and underpin a key area of the NSW economy.
For further information
Jennifer Roberts
Co-Head of Client Relationships,
Financial Markets
Yvonne Blunt
Co-Head of Client Relationships,
Financial Markets