June 25, 2024
BCI has long supported the First Nations Finance Authority’s (FNFA) financing programs, having invested in its debentures since 2014 and commercial paper since 2021.
The FNFA was created in 2005 by First Nations Chiefs and councillors to establish borrowing capacity for member First Nations and provide loans for Indigenous social and economic projects, including infrastructure, rental housing, business ownership, and power projects.
BCI has long contributed to supporting market access for FNFA and its members. Through 10 primary market offerings, we’ve invested $150 million in the FNFA bond program and are one of the largest supporters of its short-term commercial paper program.
“These investments provide our clients with reliable returns, as well as exposure to positive social outcomes like infrastructure projects and job creation. We are proud to support access to affordable financing for First Nations governments and their community members.”
– Chris Weitzel, Senior Managing Director, Fixed Income & Foreign Exchange at BCI
The FNFA’s Impact
As a not-for-profit organization, FNFA provides First Nations governments with low-rate loans, as well as investment management services and capital planning advice for the social and economic benefit of community members.
Proceeds of FNFA’s 11th debenture, which helped to create just under 600 jobs, were used to support projects including:
- Renewable energy such as equity ownership in a wind farm in Ontario and a hydro project in British Columbia.
- Access to basic infrastructure such as road and internet in Manitoba.
- Access to essential services such school construction in Alberta.
- Affordable housing in Saskatchewan.
- Employment generation through small and medium sized enterprise financing in support of the fisheries, forestry, hospitality and other sectors across the country.
The FNFA has a current loan portfolio of over $2 billion in support of First Nations-led projects across Canada, having historically supported the creation of over 22,500 jobs. British Columbia has the largest number of FNFA members and community loans in place.
With an A+ credit rating from S&P and Aa3 from Moody’s, FNFA offers fixed-income opportunities that deliver predictable returns for BCI and its clients, while allowing First Nations borrowing members to obtain financing on terms that are similar to those of Canadian municipalities.