OTTAWA, Oct. 5, 2018 /CNW/ - The success of the First Nations Fiscal Management Act and the First Nations Finance Authority contributes to new economic opportunities for Indigenous peoples and supports growth in the Canadian economy.
Today, the Honourable Jane Philpott, Minister of Indigenous Services, congratulated the First Nations Finance Authority on their fifth debenture issuance on the financial markets. This latest issuance adds an additional $138 million to the FNFA's debentures, bringing the total to $514 million available to participating First Nation governments to secure loans for infrastructure development and economic growth.
This milestone is a concrete example of what can be achieved through self-determination and First Nations asserting jurisdiction over the socio-economic development of their communities.
The First Nations Finance Authority issued its inaugural bond in June 2014 for $90 million, added $50 million in July 2015m $110 million in May 2016, $126 million in October 2017 and $138 million in September 2018, for a total of $514 million.
With this issuance, 43 First Nations are now benefitting from the authority's bond.
- The First Nations Finance Authority (FNFA), established under the First Nations Fiscal Management Act (FNFMA), is a statutory not-for-profit, stand-alone institution governed solely by First Nation communities, that provides First Nation governments with investment options, capital planning advice and access to long-term loans with preferable interest rates. First Nations use this financing to invest in infrastructure and socio-economic development projects including water treatment, roads, housing, schools, health, security and emergency services, renewable energy and aquaculture.
- A debenture is one of the most typical forms of long term loans. It is usually a type of savings bond which offers a fixed rate of interest over a long period.
- Budget 2016 committed $20 million over two years for the FNFA to strengthen its capital base so that it can continue to secure the best possible credit rating for its borrowing members, and meet growing demand from qualifying First Nations.
"Congratulations to the First Nations Finance Authority on your fifth debenture issuance. The success of the FNFA brings additional support and economic opportunities for Indigenous peoples, their communities, and helps grow the Canadian economy."
The Honourable Jane Philpott, P.C., M.P.
Minister of Indigenous Services
"We are having an impact in the First Nations communities. The projects that our members have undertaken with our financing programs have created an estimated 5,600 jobs, mostly on-reserve. In addition to improved access to housing, water and infrastructure, grassroots people are being positively impacted daily."
CEO of the First Nations Finance Authority
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SOURCE Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC)
For further information: For more information, media may contact: Rachel Rappaport, Press Secretary, Office of the Honourable Jane Philpott, 819-934-2796; Media Relations, Indigenous Services Canada, 819-953-1160, SAC.media.ISC@canada.ca