36 First Nations to Invest in a 12.5% Ownership Stake in Enbridge’s Westcoast natural gas pipeline system
Toronto, May 15, 2025 – Canada Development Investment Corporation (CDEV), through its subsidiary, Canada Indigenous Loan Guarantee Corporation (CILGC), is proud to announce the provision of a loan guarantee in connection with a landmark transaction to be completed pursuant to an agreement between 36 First Nations in British Columbia (B.C.) and Enbridge for the partnership to own 12.5% ownership interest in Enbridge’s Westcoast natural gas pipeline system.
The group of First Nations is expected to, through support of a $400-million loan guarantee issued under the Indigenous Loan Guarantee Program (ILGP), make an equity investment of approximately $715 million in Enbridge’s Westcoast natural gas pipeline system, resulting in a 12.5% ownership interest. This milestone marks a significant step in advancing Indigenous participation in major projects across Canada.
“This loan guarantee is a testament to our commitment to fostering Indigenous economic reconciliation and ensuring that Indigenous Peoples have a meaningful stake in Canada’s economic growth,” said the Honourable François-Philippe Champagne, Minister of Finance. “We are proud to support First Nations in B.C. in this historic endeavour.”
“This landmark agreement is a powerful example of how our new federal government is getting things done in Canada,” said the Honourable Tim Hodgson, Minister of Energy and Natural Resources. “I am proud to support Indigenous leadership and industry coming together to drive long-term economic prosperity and reconciliation for all Canadians.”
“Today’s announcement is historic for all parties involved. This represents the inaugural loan guarantee from the recently launched federal loan guarantee program and is a major milestone for both CILGC and the First Nations involved. I want to thank everyone who contributed to making this historic and highly complex agreement possible. Today’s announcement also underscores CDEV’s role as a catalyst for transformative initiatives that benefit all Canadians,” said Elizabeth Wademan, President and CEO of CDEV, the parent company of CILGC. “We launched CILGC in record time with a commitment to operate at the speed of business. The CDEV team is proud of the leading role it played on this transaction, and for the partnership created through this deal.”
This transaction exemplifies the objectives of the program: advancing Canada’s commitment to Indigenous economic reconciliation and self-determination, facilitating partnerships between Indigenous groups and the private sector, unlocking access to affordable capital to enable equity ownership, and supporting major capital project opportunities with significant, multi-generational projects that will drive Indigenous economic prosperity.
The First Nations in B.C. are represented by an Indigenous-owned partnership, called Stonlasec8 Indigenous Alliance Limited Partnership, whose wholly owned subsidiary entered into the agreement with Enbridge. The closing of the transaction under the agreement is subject to the completion of the required financing and closing conditions. The transaction is expected to close at the end of the second quarter of 2025, at which point the loan guarantee will be issued. Pending successful closing, this transaction is expected to foster economic growth for all Canadians, including Indigenous Peoples.
CIBC Capital Markets acted as financial advisor to CILGC and Stikeman Elliott as legal advisor.
Quick Facts
- There are significant challenges for Indigenous Peoples in securing affordable capital and leveraging assets. Loan guarantees can improve the ability of Indigenous people to participate in projects that could generate long-term economic benefits.
- Government-backed loan guarantees reduce financial risks for lenders and Indigenous investors, promoting increased Indigenous ownership in viable, cash-generating projects.
- First announced in Budget 2024, the federal ILGP was launched on December 16, 2024, through the establishment of CILGC, as a subsidiary of CDEV.
- On March 10, 2025, CDEV appointed Michael Bonshor as CILGC’s inaugural Board Chair.
- On March 21, 2025, the Government of Canada announced that it was doubling the Indigenous Loan Guarantee Program from $5 billion to $10 billion and opening it to major projects in more sectors of the economy.
For more information about the Indigenous Loan Guarantee Program: www.cilgc-cgpac.ca