The Canada Infrastructure Bank (CIB) has unveiled the Indigenous Equity Initiative (IEI), a program designed to support First Nation, Métis, and Inuit communities in acquiring equity stakes in major infrastructure projects. This initiative commits at least $1 billion to facilitate Indigenous participation in the clean energy generation and mineral development sectors, which are considered crucial for the economic growth of these communities and the country.
The IEI offers equity loans ranging from $5 million to $100 million, covering up to 90% of an Indigenous group's equity investment in infrastructure projects on their ancestral lands. The loans come with the advantage of low federal interest rates and have a minimum repayment term of 15 years. This approach is intended to address the financial challenges Indigenous communities often encounter with conventional lending methods when seeking to obtain equity stakes.
Ehren Cory, CEO of the Canada Infrastructure Bank, emphasized the initiative's potential to accelerate infrastructure projects while fostering economic partnerships with Indigenous communities.
The IEI represents a strategic move by the CIB to counteract the reluctance of market lenders to provide capital for Indigenous communities seeking to invest in infrastructure. By doing so, it aims to enhance the long-term benefits that come from increased participation in vital infrastructure developments across Canada.
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