by pmnationtalk on October 29, 2019
First Nations Finance Authority (FNFA) Issues its Largest Bond to date.
Westbank, British Columbia (October 28, 2019) – The FNFA has issued its sixth debenture into the capital markets, raising $170 Million for 22 First Nations. The debenture was purchased by institutional investors both domestically and internationally. This brings total debenture issuance by the FNFA since 2014 up to $678 million.
FNFA’s debentures are backed by its First Nations’ “own source revenues” which are stable, predictable revenue streams that are generated by each First Nation.
“The confidence shown to FNFA by investors in the capital markets continues to grow,” explains Ernie Daniels, President and CEO. “The infrastructure and economic development that FNFA First Nations have undertaken have created an estimated 1,484 new jobs this year, most of which were on reserve lands employing First Nations people. Every FNFA loan is a success story, and we are very proud to play a role in our members achieving their community priorities. The economic impact of these investments benefits all Canadians.”
The purposes for which the sixth debenture proceeds were used include such projects as multi-purpose administrative buildings, business parks, two large hotels, business acquisitions, a school addition/renovation, commercial travel centres, land developments and a hydro power development.
“The FNFA continues to make a positive impact in the First Nations. This membership now extends across 8 provinces and one Territory,” states FNFA Chair Chief Warren Tabobondung of Wasauksing First Nation. “The mandates under our Act not only creates access to government-rate loans and repayment terms through the FNFA, but also a pathway to enable communities to strengthen their internal capacities with the goal of applying best practices to managing our own wealth and future opportunities. First Nations are coming to the realization that we are stronger together. We are taking control of our own futures by accessing capital and developing our own communities on our own terms.”
FNFA membership is open to all First Nations across Canada, and is governed by its members.
For More Info:
Ernie Daniels
President and CEO
First Nations Finance Authority
PH: (250) 768-5253
Fax: (250) 768-5258
info@fnfa.ca
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 Nation 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.
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 bond issuance date, the FNFA also offers short-term loans at below Bank Prime. Short-term loans are rolled over into each new bond. 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.
Original Link: https://nationtalk.ca/story/first-nations-finance-authority-fnfa-issues-its-largest-bond-to-date
