The Government of Canada has congratulated the First Nations Finance Authority (FNFA) on its fourth Debenture Issuance, which assists with financing First Nations water infrastructure projects.
Established under the First Nations Fiscal Management Act (FNFMA), FNFA enables First Nations to collaboratively access long-term financing at preferred rates through the issuance of bonds on capital markets. FNFA’s website states that “One of the first steps with infrastructure development is clean water,” making the financing of such projects one of its key goals.
“Our 4th debenture saw twice the demand from investors that was available, due in part to our recent credit rating increase to A2 from A3 by Moody’s Investor’s Service,” said Ernie Daniels, CEO of the First Nations Finance Authority. “The 19 participating First Nations will pay our lowest rate to date, given market conditions, but more importantly the realization of many community projects.”
On October 27th, Jane Philpott, Minister of Indigenous Services, congratulated the FNFA on their fourth debenture issuance on the financial markets. The issuance added an additional $126 million to the FNFA’s debentures, bringing the total to $376 million.
“Congratulations to the First Nations Finance Authority for its fourth debenture issuance. The success of the FNFA improves economic opportunities for Indigenous peoples and helps grow the Canadian economy,” said Philpott.
In its statement, the government stated the importance of economic development in Indigenous communities as being critical to closing socio-economic gaps and playing an important part in the federal government’s renewed relationship with Indigenous peoples. Budget 2016 committed $20 million over two years to bolster FNFA’s capital base.
With the new issuance, 41 First Nations now benefit from the FNFA’s bond. “The impact of these undertakings will create an economic ripple effect in terms of job creation, purchase of goods and services, and reduced dependence on government,” said Daniels. “We now have more qualifying members, more geographical diversity, including new members in the NWT, and more interested investors going forward.”
Visit the FNFA online to learn more about their work and funding opportunities.