OTTAWA, Oct. 27, 2017 /CNW/ - Supporting economic development in Indigenous communities is critical to closing socio-economic gaps and plays an important part in our government's renewed relationship with Indigenous peoples.
Today, the Honourable Jane Philpott, Minister of Indigenous Services, congratulated the First Nations Finance Authority (FNFA) on their fourth debenture issuance on the financial markets. This issuance adds an additional $126 million to the FNFA's debentures, bringing the total to $376 million.
The FNFA, established under the First Nations Fiscal Management Act (FNFMA), enables First Nations to collaboratively access long-term financing at preferred rates through the issuance of bonds on capital markets. 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.
The success of the FNFMA and the FNFA contributes to the goal of improving economic opportunities for Indigenous peoples and growing the Canadian economy.
- 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.
- FNFA issued its inaugural bond in June 2014 for $90 million, added $50 million in July 2015, $110 million in May 2016 and $126 million in October 2017, for a total of $376 million.
- With this issuance, 41 First Nations are now benefitting from the FNFA's bond.
"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."
The Honourable Jane Philpott, M.D., P.C., M.P.
Minister of Indigenous Services
"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. The 19 participating First Nations will pay our lowest rate to date, given market conditions, but more importantly the realization of many community projects. 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. We now have more qualifying members, more geographical diversity including new members in the NWT, and more interested investors going forward."
CEO of the First Nations Finance Authority
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SOURCE Indigenous and Northern Affairs Canada
For further information: media may contact: Andrew MacKendrick, Press Secretary, Office of the Honourable Jane Philpott, 819-956-5372; INAC Media Relations, Indigenous and Northern Affairs Canada, 819-953-1160