CIB, First Nations Bank sign loan agreement
The Canada Infrastructure Bank (CIB) has signed a loan-participation agreement worth $100 million with the First Nations Bank of Canada (FNBC) for enabling infrastructure in First Nations, Métis, and Inuit communities.
The funding will give Indigenous communities access affordable and flexible financing that in turn enables them to unlock enabling infrastructure development that can support improved living conditions, new economic opportunities and housing.
Often, limited access to affordable capital at flexible terms can prevent Indigenous communities from achieving of community development projects.
Enabling infrastructure can include site works, roadworks, water and wastewater management and utility connections, and is needed to support economic and community growth through residential, commercial or industrial developments.
“This first-of-its-kind loan product with FNBC catalyzes innovation in the financial services sector and in the Indigenous market,” said CIB CEO Ehren Cory. “Through this investment, Indigenous communities will work with FNBC to access critical financing to develop much-needed infrastructure in their communities and advance socio-economic reconciliation.”
To pair with the CIB’s commitment, FNBC will provide concurrent project lending. Together, this comprehensive financing package will enable Indigenous communities to realize their community and/or economic development plans faster.
FNBC is the largest Indigenous-owned and -led financial institution in Canada. More than 70% of FNBC’s employees are Indigenous, and Indigenous clients comprise 90% of its loan portfolio. FNBC provides services to First Nation, Métis and Inuit people and communities in urban areas and remote locations.
“This new loan program will make infrastructure projects in Indigenous nations and communities more affordable and allow for more opportunities to develop Indigenous-owned lands,” said Bill Lomax, President and CEO, First Nations Bank of Canada. “By partnering with CIB, we can leverage our expertise in working with Indigenous communities and support new projects in a way we have not seen before.”
Through the CIB’s Indigenous Community Infrastructure Initiative, the CIB collaborates with First Nation, Métis and Inuit communities across Canada on infrastructure projects in partnership with, and for the benefit of Indigenous communities across Canada.