RBC establishing practice focused on Indigenous finance as project push accelerates

TORONTO — RBC says it is launching an advisory service to help Indigenous groups buy into major projects as Canada moves to accelerate development on numerous fronts.

Speaking at the First Nations Major Projects Coalition conference in Toronto, RBC chief executive Dave McKay said that with most major projects on or next to Indigenous lands, it’s critical that Indigenous partnership is at the centre of this development push.

McKay said Indigenous groups face barriers to access the capital needed to become partners, and while banks are still learning how to operate in this space, they can play a meaningful role in boosting Indigenous equity.

Mark Podlasly, chief executive of the FNMPC, says banks recognize that Indigenous financing is a growth area as Indigenous people in Canada already have about $120 billion in assets under management or control.

He says securing an equity stake for Indigenous partners creates certainty of consent and creates a competitive advantage for projects.

Podlasly says the avenues for Indigenous groups to secure financing are growing, including through bonds and the stock market as well as the growing use of government loan guarantees.