First Nations are accessing capital for large resource projects like never before.
Frank Busch, director of information and marketing with the First Nations Finance Authority, wrote in a recent column that an increasing number of First Nations are being certified by the First Nations Financial Management Board, which allows the bands to access large capital on the international bond market through the First Nations Finance Authority.
To access the funds, the band must draw upon its own source revenue to be put up as a collateral of sorts. According to Busch, these revenues can be from contracts, land leases, impact benefit agreements, band-owned business, resource sharing agreements, royalties and many others. In fact, Busch said most bands have access to some sort of own source revenue.
Bands with this sort of financing can then leverage it to enter into partnerships with private business.
That band governments are now securing this sort of financing is great news given historic barriers to financing faced by First Nations.
This will only allow First Nations to enter the modern economy in a much greater way.
