OTTAWA, July 4, 2014 /CNW/ - The Honourable Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development, congratulates the First Nations Finance Authority (FNFA) on their success on their very first bond issuance on the financial markets on June 19, 2014. The proceeds of the bond issue will allow First Nations to have the same access to private capital enjoyed by most local governments in Canada.
The First Nations Fiscal Management Act (FNFMA) which came into force on April 1, 2006, established the FNFA, a non-profit corporation, to provide First Nations governments with financing, investment and advisory services, as well as financial instruments to help build their futures.
Currently, 124 First Nations have chosen to participate in the FNFMA regime, which also provides tools to help strengthen real property taxation systems on reserve through the First Nation Tax Commission and strengthen financial management systems on reserve through the First Nations Financial Management Board.
The success of the First Nations Fiscal Management Act along with the success of the First Nations Finance Authority contributes towards our shared goal of improving economic opportunities for Aboriginal peoples.
- Issued on June 19, 2014 the $90 million worth of 10-year notes represent a major breakthrough for borrowing member First Nations.
- In March 2011, Canada provided the FNFA with $10 million to fund its Credit Enhancement Fund (CEF) which assists the FNFA in securing the best possible credit rating for the benefit of borrowing member First Nations.
- In fall 2013, the FNFA obtained an A3 credit rating from Moody's Investor Services.
- Through the FNFA, borrowing members can access low-rate and long-term pooled borrowing otherwise unavailable to them.
"I wish to extend my congratulations to the First Nations Finance Authority on the issuance of its inaugural bond of $90 million today. This bond represents an important step in helping First Nations create jobs and prosperity and reach greater self-sufficiency. The proceeds of the bond issue will be used by First Nations to build or improve community infrastructure and strengthen their economies."
The Honourable Bernard Valcourt
Minister of Aboriginal Affairs and Northern Development
"This is historic for First Nations in Canada to access the Capital Markets through debenture financing. First Nations are now in a position to build their own futures on their own terms with fixed rate financing for longer terms. FNFA acknowledges the support of the Government throughout the process of issuing this inaugural debenture."
Ernie Daniels, President and CEO
First Nations Finance Authority
First Nations Finance Authority
First Nations Fiscal Management Act
Rating Action: Moody's Assigns A3 Rating to the First Nations Finance Authority
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SOURCE: Aboriginal Affairs and Northern Development Canada
For further information: Erica Meekes, Press Secretary, Office of the Minister of Aboriginal Affairs and Northern Development, 819-997-0002; Media Relations, Aboriginal Affairs and Northern Development Canada, 819-953-1160