Mississaugas of the Credit invests $15M million to become shareholder in First Nations Bank of Canada

Mississaugas of the Credit in Ontario has invested $15 million in First Nations Bank of Canada, becoming one of the bank’s largest shareholders with an ownership stake of approximately 10 per cent. The $15-million dollar investment for an approximate 10 per cent stake values First Nation Bank of Canada at roughly $150 million The deal, announced Wednesday at Canadian Club in Toronto, completes a $50 million capital raise by the bank and brings the total number of First Nations and shareholders to 117. Chief Margaret Sault said the investment is part of the Nation’s long-term economic strategy. “This investment represents an important step forward in our Nation’s commitment to building a strong and sustainable economic future for our people,” Sault said. “By becoming a major shareholder in First Nations Bank of Canada, we are investing in an opportunity to build long-term wealth for our community with a partner who understands our needs and aspirations.  “Meaningful participation in the Canadian economy includes having ownership in the institutions that help drive and shape its future. We see this investment as an opportunity to create lasting benefits for future generations,” she added.  FNBC president and CEO Bill Lomax said the addition of Mississaugas of the Credit strengthens the bank’s founding vision. “Today, we are building a growing national bank, supported by First Nations and Indigenous shareholders from across the country, and well positioned to pursue the significant opportunities ahead.” “For 30 years, First Nations Bank of Canada has been focused on building a strong, successful financial institution dedicated to serving Indigenous communities,” Lomax said. “With the addition of Mississaugas of the Credit First Nation as a major shareholder, that founding vision is stronger than ever.” According to Lomax, the investment will allow FNBC to loan more money to First Nations businesses for community infrastructure and economic development.  The bank, founded in 1996, is Canada’s only Indigenous-owned chartered bank. It operates 22 branches and service centres across six provinces and three territories, manages more than $1.625 billion in assets. Read More:  Fintrac imposes penalty on First Nations Bank of Canada Why ownership matters For First Nations, equity ownership in a federally regulated bank represents a shift from being primarily clients of mainstream financial institutions to being owners.  Lomax has described the institution as doing “the economic part of reconciliation and the financial part of nation-building.”  Other First Nations have said that having a stake in the bank gives them the ability to  keep money within the community rather than extracting it.  Mississaugas of the Credit, the sole Treaty holder in the Greater Toronto and Golden Horseshoe region — an area that generates roughly 25 per cent of Canada’s GDP — framed the investment as both “economic and generational.”  The announcement included a fireside discussion with Sault, Coun. Larry Sault, Lomax and was moderated by Bank of Canada senior deputy governor Carolyn Rogers. Keelan JacobsOnline Journalist | OttawaKeelan is Anishinaabe from Walpole Island First Nation (Bkejwanong Territory). He graduated with an Honours B.A. In Political Science from the University of Toronto and follows the stories where power, money and public policy meet. Keelan has a strong interest in economics and finance, and is a lifelong hockey and sports fan. Continue Reading