Indigenous Financing Opportunities Fuelling Equity Investments – Significant Momentum in 2025

Obtaining financing on reasonable terms can be a significant obstacle for many Indigenous groups seeking to participate in equity opportunities for Canadian projects. In recent years, the availability of this financing through loan guarantee and other financing programs has significantly increased – this year is no exception.

Expanded Funding…

On March 21, 2025, prior to the subsequent election of the Liberal government on April 28, 2025, Prime Minister Carney announced updates to the federal Indigenous Loan Guarantee Program, increasing the program’s funding to $10 billion (following the initial investment of $5 billion when the program was initiated just three months earlier, in December 2024).

The impact of this program is quickly becoming realized, with the Canada Development Investment Corporation announcing the first loan guarantee from this program on May 15, 2025 (providing a $400 million loan guarantee to support a group of First Nations in making an equity investment of approximately $715 million in Enbridge’s Westcoast natural gas pipeline system, resulting in a 12.5% ownership interest).

More recently, on May 21, 2025, Ontario tripled the total amount of loan guarantees available through its Indigenous Opportunities Financing Program (formerly the Aboriginal Loan Guarantee Program) to $3 billion.

… and Expanded Opportunities

Further, it is not solely the quantum of financing available through existing Indigenous-specific financing programs that is receiving attention in recent months, but also how and for which initiatives this financing is being made available. For example:

• When increasing the quantum of funding available through the Ontario Indigenous Opportunities Financing Program, eligibility for the program was also expanded beyond the electricity sector to include eligible projects in mining and critical minerals, resource development, energy, pipelines and other sectors. This evolution is particularly notable, as Indigenous loan guarantee programs were previously not available for investments directly in mining projects.
• The updated federal Indigenous Loan Guarantee Program will be available for a broader range of projects, beyond energy and natural resources, including Indigenous-led infrastructure, transportation and trade initiatives.
• The First Nations Finance Authority (FNFA) announced on March 26, 2025 that it is working with the federal government on proposed amendments to its governing legislation, the First Nations Fiscal Management Act, to provide the FNFA with the ability to provide financing to special purpose vehicles (rather than solely listed First Nation governments). These amendments would provide much more flexibility to First Nation organizations in accessing financing from the FNFA. For further details on the impact of such an amendment, the FNFA’s submission for the 2025 Budget Consultations for the federal government can be viewed here.

Broad Growth in Indigenous Investment Requirements

Beyond the expansion of available financing and scope of opportunities, project development opportunities with an Indigenous investment prerequisite are also expected to drive Indigenous equity involvement in various sectors.

As a recent example, BC Hydro is setting up its 2025 Call for Power, stating that, “[w]orking with First Nations and advancing economic reconciliation is a priority for the 2025 Call for Power as it was for the 2024 Call.” For reference, the previous 2024 Call for Power required that 25% First Nations equity ownership be in place by a project’s commercial operation date.

In addition, BC’s Premier David Eby has indicated that BC provincial initiatives to fast-track certain project reviews in Bill 14 (Renewable Energy Projects (Streamlined Permitting) Act) and Bill 15 (Infrastructure Projects Act) will only apply where First Nations in whose traditional territory the applicable projects are situated have equity participation and have provided consent. We note, however, that these statements are not reflected in the legislation, nor have these statements been posted as official government policy – accordingly, it is unclear how these requirements would be implemented.

These recent BC examples reflect a cross-country trend towards increasingly ambitious First Nation equity participation in renewable energy projects, as demonstrated through the Nova Scotia Minister of Environment’s acknowledgement that First Nations participation was required for the six wind farm projects selected through its Green Choice Program, and in Saskatchewan’s  recent announcement that it had selected a 51% Indigenous-owned partnership to develop, own and operate a new wind and solar facility in south-central Saskatchewan.  

More Opportunities on the Horizon?

Collectively, the initiatives above demonstrate significant momentum in the provision of Indigenous financing opportunities in Canada and a desire to facilitate Indigenous equity investment into projects and other economic opportunities. We will continue to monitor and report on additional financing opportunities and amendments to existing opportunities as they arise.

If you have any questions about Indigenous loan guarantee programs and other means of financing Indigenous equity investments, please do not hesitate to reach out to us.