Canada Indigenous Loan Guarantee Corporation

Initially announced in Budget 2024, the Indigenous Loan Guarantee Program was formally launched on December 16, 2024, in the 2024 Fall Economic Statement. The Minister of Finance announced the creation of the Canada Indigenous Loan Guarantee Corporation, a wholly owned subsidiary of CDEV, to deliver the program, which provides up to $5 billion in Indigenous loan guarantees to unlock access to the capital needed for Indigenous groups to make major economic investments.

Loan guarantees work by providing a guarantee that the debt will be repaid by the guarantor (the federal government) should the borrower (Indigenous groups) be unable to repay. Loan guarantees will enable Indigenous groups to overcome historic barriers and to become meaningful equity partners and owners of natural resource and energy projects.

Objectives

• Advance Canada’s Indigenous economic reconciliation and self-determination
• Unlock access to affordable capital for Indigenous groups
• Support Indigenous economic reconciliation
• Facilitate Indigenous partnerships with private sector industry
• Deliver better projects guided by Indigenous leadership and knowledge
• Build Indigenous business and commercial dealmaking capacity

Overview

Indigenous communities need to be able to share in the benefits of natural resource and energy projects in their territories and on their own terms. Due to the Indian Act and the legacy of colonialism, Indigenous communities have fewer options for securing capital or leveraging existing assets as collateral, leading to increased borrowing rates that create a barrier to equity investment in natural resource and energy projects.

The number of major natural resource and energy projects with potential for Indigenous equity participation is anticipated to grow significantly, with the First Nations Major Projects Coalition’s research expecting this potential to reach $525 billion in capital investment over the next ten years. If Canada is to make sure that Indigenous communities are able to fully benefit from the opportunities ahead, they need fair access to affordable capital that meets their unique needs.

What is an Indigenous Loan Guarantee?

The Indigenous Loan Guarantee Program will provide access to affordable capital to Indigenous governments and communities. Loans would be provided by financial institutions or other lenders and guaranteed by the Government of Canada. This means that the borrower would benefit from the government’s AAA credit ratings, delivering a lower interest rate than is available to most borrowers.

For example, an Indigenous community in Saskatchewan is looking to purchase a 10 per cent stake in an electricity transmission project before approving the project to pass through its territory. The group applies to the Indigenous Loan Guarantee Program. If approved, the loan guarantee would lower their cost of borrowing. This makes equity participation sustainable through repayment and allows more revenue from projects to be reinvested in the community

Contact

For more information, please visit www.cilgc-cgpac.ca.

Careers

Note that CDEV is currently hiring for several positions to assist with the program. If you are interested in playing a role in this important opportunity contributing to economic reconciliation, consult our careers page.