Category: Archives

FOR IMMEDIATE RELEASE

The First Nations Finance Authority Issues $106M (CA) in Loans to First Nations

WESTBANK, BRITISH COLUMBIA (July 20, 2015) – The First Nations Finance Authority (FNFA) is pleased to announce the reopening of its 2014 inaugural debenture to add an additional $50 million (CA) of debt, for a combined issue of $140 million (CA). These proceeds, plus interim bridge financing, have funded $106M in new loans this year. FNFA bonds are used by the Authority’s Borrowing Members (participating First Nation governments) for capital purposes, investing in the infrastructure that encourages economic development and supports the building of safe, healthy, and prosperous First Nation communities.

Jody Wilson-Raybould, Chair of the FNFA, stated, “I am extremely pleased with the market interest in, and reception of, FNFA bonds and the incredible potential for growth. Pooling First Nation borrowing requirements through the FNFA, based on a collective credit, has made access to timely and affordable public financing for First Nations a reality.” Chair Wilson-Raybould added that “the FNFA is helping to bring about transformative change in First Nation communities. With the monies raised through the FNFA, First Nations are now able to build much-needed infrastructure that supports social and economic development.”

Siksika Nation, Alberta will use their proceeds from the opened issue to build a new school. According to Siksika Chief, Vincent Yellow Old Woman, “working with the FNFA means that our children will be able to go to a school that we are able to build in a good way for them.” Vincent Andrew, the Chief Financial Officer of the Siksika Nation, commented that “having an organization like the FNFA has really been a life saver in many ways. ” He added, “Siksika Nation had other borrowing options through the traditional banks—but with the FNFA, the rates, terms and conditions were better and, quite frankly, FNFA was a lot easier to work with.”

Chief David Harry of the Malahat First Nation, BC, also participating in the second issue, commented that “for about the last 20 years, we struggled internally and were only managing poverty.” Today, however, “Malahat First Nation has a comprehensive, community-driven plan that focuses on nation building, where increasing the land base was an important component of this plan. The FNFA gave us the ability to acquire the land a lot faster than we ever thought possible.” Lawrence Lewis, Manager of the Malahat First Nation added, “being a Borrowing Member of the FNFA gives us the tools we need to protect our language and culture and deliver on the goals that our community members have expressed through our comprehensive community plan.”

“The FNFA is quickly becoming the lender of choice for First Nations governments,” explained Ernie R. Daniels, President and CEO. “First Nations are beginning to see that there is a better and more appropriate way to finance their projects, and in a manner similar to other governments in Canada.”

The FNFA is a not-for-profit First Nation institution established pursuant to the federal First Nations Fiscal Management Act. The FNFA provides qualifying First Nations from across Canada with access to the capital markets. The Borrowing Members of the FNFA govern the FNFA through an elected Board of Directors. The FNFA enjoys two investment grade credit ratings: A3 from Moody’s Investors Service and A- from Standard & Poor’s Ratings Services.

For more information, please visit the FNFA website at www.fnfa.ca.

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Media contact:

Ernie R. Daniels,

President and CEO, First Nations Finance Authority,

Phone: (250) 768.5253 ext. 112, email: edaniels@fnfa.ca

Media Release
Another ‘first’ for Membertou First Nation

Membertou, NS – July 11, 2012 – Membertou First Nation has become the first Aboriginal government to secure long-term financing through the First Nation Finance Authority (FNFA). After completing the requirements in the Fiscal and Statistical Management Act, Membertou was approved for a 10 million dollar repayable loan to build new infrastructure within the community.

“The First Nations Finance Authority (FNFA), established under the Fiscal and Statistical Management Act, is very pleased to announce that it has made its inaugural loan to the community of Membertou,” says FNFA CEO and President, Ernie Daniels. He continues, “Through the dedicated leadership by Membertou’s Chief and Council, and hard work by a very capable and diligent staff, Membertou is the first Aboriginal community in Canada to complete the requirements in the Fiscal and Statistical Management Act that allowed the First Nation to request a loan from the FNFA.”

In past years the laws that restricted Aboriginal government’s access to long-term financing made it difficult to advance in the business world. In securing this financing, Membertou will now be playing on a more level playing field with the global business community with fewer barriers and restrictions. This inaugural financing option will allow for Membertou to overcome the only option they had in the past; high interest/high risk borrowing.

Hon. John Duncan, Minister of Aboriginal Affairs and Northern Development Canada, says, “It is our hope that this will allow First Nations in Canada to advance economic development in their communities, and to be full participants in the Canadian economy.”

FNFA funded Membertou’s loan request through its Interim Long Term Financing program, and the interest rate to Membertou should remain around the 2.50% until such time as enough other First Nations also complete the FSMA processes to request FNFA loans.

“This is great news for Membertou,” says Chief Terry Paul. “With this financing we are able to set an example in economic development for other First Nation communities, and it enables us to conduct business operations in a similar format as other businesses, in both the public and private sectors, because of the long-term financing option.”

The FNFA is an Aboriginal not-for-profit organization whose purpose is to provide low-rate loans, investment options, and capital planning advice to First Nation governments.

For more information visit, www.fnfa.ca/en/index.php
For media inquiries:
Danielle Hartley, Communications Manager

Membertou Corporate Division
Office 902-429-5445 Ext. 5018 | Cell 902-237-1758
daniellehartley@membertou.ca

Media Advisory | For Immediate Release

The First Nations Finance Authority announces its ground-breaking inaugural loan

JULY 11, 2012 – WESTBANK, BRITISH COLUMBIA The Canada-wide First Nations Finance Authority (FNFA) today announced its inaugural loan to the community of Membertou, in Nova Scotia. Established under Canada’s First Nations Fiscal and Statistical Management Act, FNFA provides greatly-needed community development financing to First Nations, at interest rates comparable to those available to local governments.

Under the strong leadership of the Hon. John Duncan, Minister of Aboriginal Affairs and Northern Development Canada, a regulation was developed in 2011 to allow First Nations like Membertou to leverage non-property tax revenues to support loan requests from the FNFA.

Minister Duncan hopes that this will allow First Nations in Canada “to advance economic development in their communities, and to be full participants in the Canadian economy.”

FNFA has provided a loan to Membertou at 2.50%. The bank prime in Canada is 3.00%. FNFA CEO, Ernie Daniels, estimates that “the benefit to Membertou of receiving the FNFA loan is in the neighbourhood of $140,300 in cash flow savings each month. This is money that can be invested in the good work of fostering a stronger community.”

FNFA is a non-profit, Aboriginal-governed financial institution created to provide First Nations across Canada, regardless of size or location, with the financial instruments employed by Canadian governments at all levels. With the help of FNFA’s services, First Nations can access the affordable capital they need to build safe, healthy and prosperous communities. FNFA loans can have repayment terms up to 30 years, and offer fixed-rate options to help community budgets remain prosperous and healthy.

For media inquiries:

Ernie Daniels (President/CEO), or Steve Berna (COO)
(250) 768-5253, First Nations Finance Authority

MEDIA ADVISORY | FOR IMMEDIATE RELEASE

JUNE 20th, 2014 WESTBANK, BRITISH COLUMBIA

The First Nations Finance Authority issues Inaugural Debenture

History was made today, as the First Nations Finance Authority (FNFA) issued its inaugural debenture in the amount of $90 million CAD. The FNFA pools the borrowing requests of its member First Nations into one debenture. The capital raised by this inaugural debenture will be used by 14 First Nations to build and make improvements to roads, water and waste systems, power/lighting, public buildings and other local infrastructure as well as providing economic opportunities both on and off reserve.

The Chair of the FNFA, Terry Paul and Chief of Membertou First Nation, Nova Scotia, stated, “This is a great day for First Nations and the FNFA. Far too many First Nations have been unable to access affordable capital on the financial markets, something all other governments in Canada take for granted when public financing is required.” He continued, “Today, First Nations have made a significant step forward as economic equals with other governments. Over the long-term, this will have a profound and positive impact in our communities. By pooling and working together, it is now possible for any qualifying First Nation, regardless of size or location, to access the capital markets and enjoy the benefits of an investment-grade credit rating.”

BC Regional Chief Jody Wilson-Raybould and Deputy Chair of the FNFA reflected, “The significance of today’s FNFA bond issue for First Nations, and indeed the country, cannot be overstated. First Nations are in an important period of transition, rebuilding our communities and moving away from governance under the Indian Act. Having the financial tools that are now available through the FNFA is critical in ensuring that transition can take place and in securing a better future for our peoples.” She concluded, “For investors, FNFA bonds also provide a new and exciting ethical investment option. My vision is that most Canadians will one day have FNFA bonds in their portfolios as they do municipal, provincial or federal bonds.”

In addition to strong domestic interest, the debenture has also attracted institutional interest from the U.S. Such confidence shown by the investment community speaks to the strength of First Nations own source revenues, their governance systems and FNFA investor safeguards.

“This successful debenture issue reflects the growth in First Nations economies and the material steps that have been taken moving forward, including the establishment of strong financial systems by First Nation governments,” says Ernie Daniels, President and CEO of the First Nations Finance Authority. “First Nations economies are emerging as real players on the world stage.”

The FNFA is a not-for-profit First Nation institution established pursuant to the federal First Nations Fiscal Management Act, that provides any qualifying First Nations from across Canada with access to the capital markets. The First Nations govern the FNFA, as members elect from amongst themselves a Board of Directors. Notable for this year was the expansion of the Board from 6 directors to 9, reflecting the growth in membership and a desire to ensure greater regional representation from First Nations across the country.

FNFA facilitates loans to Borrowing Members from the proceeds of bond issuances. These loans can have repayment terms up to 30 years and offer fixed-rate options to assist the member First Nation’s budgeting needs. In order to fund member’s borrowing requirements prior to an expected issuance date, the FNFA also offers short-term loans at below Bank Prime. Short-term loans are rolled over into each new debenture. As more First Nations qualify to become Borrowing Members, the FNFA will continue to grow and diversify, looking to strengthen its credit rating and consequently the financial benefits to its members.

Harold Calla, Executive Chair of the First Nations Financial Management Board, congratulates the First Nations Finance Authority and the First Nation members of the borrowing pool on the issuance of the inaugural FNFA debenture. “This historic issuance demonstrates the power of working together to raise the capital necessary to support social, economic, and business development that is necessary to reduce dependency and increase self-reliance,” says Calla. “The issuance of this debenture achieves a cornerstone objective of the First Nations Fiscal Management Act.”

Given the significant interest generated from First Nations and investors alike the FNFA is already preparing for its second debenture issuance. This second debenture is expected by March 31, 2015.

Media Inquiries should be directed to:

Chair Terry Paul (Chief of Membertou)
PH: (902) 564-6466 ext. 2500
Fax: (902) 539-6645
terrypaul@membertou.ca

Deputy Chair Jody Wilson-Raybould (BC-AFN Regional Chief)
PH: (604) 482-9200
Fax: (604) 922-7433
regionalchief@bcafn.ca

Ernie Daniels, President and CEO, FNFA
PH: (250) 768-5253
Fax: (250) 768-5258
edaniels@fnfa.ca