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Just like a space probe hurtling through deep space, Indigenous investing is only going up.
What happened: The First Nations Bank of Canada — the largest Indigenous-owned bank in the country — announced a plan to raise as much as $50 million to reach more customers, expand its capital by as much as 50%, and double its loan book to $600 million.
- The move comes a week after the federal government announced an Indigenous loan guarantee program in the budget that will start off with $5 billion in funding.
Why it matters: Indigenous communities are an emerging financial force. The increased recognition of land treaties and the Indigenous right to self-determination means major energy, infrastructure, and resource projects can’t happen without their participation.
- Major projects that communities have stakes in include the Coastal GasLink Pipeline in B.C., the Waasigan Transmission Line in Ontario, and Enbridge oil pipelines in Alberta.
Yes, but: While the investment opportunities are limitless, actually investing can be difficult for Indigenous communities. By law, Indigenous assets are considered properties of the Crown and held in trust, creating the conundrum of raising capital without any collateral.
Bottom line: The First Nations Major Projects Coalition, a non-profit, estimates there could be $525 billion in investment opportunities for Indigenous equity participation over the next 10 years. With the First Nations Bank expanding, more Indigenous investors could get in on the action.—QH
To learn more about how Indigenous communities are taking a stake in Canada’s economy, listen to the rest of our conversation with Mark Podlasly on Free Lunch by The Peak.