First Nation Bank of Canada President & CEO Bill Lomax in Ottawa in June, 2023. The investment from Wabigoon Lake Ojibway Nation raises the Indigenous-owned proportion of FNBC to 90 per cent from 88 per cent.Dave Chan/The Globe and Mail
First Nations Bank of Canada is raising $12.8-million in equity financing from Wabigoon Lake Ojibway Nation as it seeks to boost investments in Indigenous businesses and projects.
The Ontario First Nation is taking a 9.99-per-cent stake in FNBC, making it one of the largest shareholders in the Saskatoon-based financial institution, the country’s largest Indigenous-owned lender.
The investment is the third major commitment for FNBC in recent months, as the bank attempts to raise $30-million to $50-million in Indigenous equity capital to bolster its loan book and expand its services across the country.
“While there’s some trepidation in the economy – people are concerned about tariffs and the economy broadly – the opportunities for First Nations and Indigenous communities are pretty significant,” FNBC chief executive officer Bill Lomax said in an interview.
“There’s an opportunity for the broader community to work with Indigenous communities right now to help find a way through this transition period as we realign trade and business in this country, both internally and externally.”
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In August, FNBC raised $9-million from five Indigenous groups in British Columbia, Saskatchewan, Alberta and the Yukon. That same month, Lheidli T’enneh First Nation and Tano T’enneh Enterprises of B.C. invested $10-million to take an 8.6-per-cent equity stake in the bank.
The investment from Wabigoon Lake Ojibway Nation raises the Indigenous-owned proportion of FNBC to 90 per cent from 88 per cent and brings the fundraising endeavour to more than $31-million. That will allow the bank to issue $250-million in new loans, Mr. Lomax said.
Through its partnerships with the Business Development Bank of Canada and the Canada Infrastructure Bank, FNBC will be able to facilitate more than half a billion dollars in loans to Indigenous communities for a variety of infrastructure projects, including schools, hotels and community centres.
“It will allow us to lend hundreds of millions more to the nations that we’re working with,” Mr. Lomax said.
In the past year, loan growth in FNBC’s commercial banking unit jumped 26 per cent, Mr. Lomax said. He expects activity to accelerate in the new year as Indigenous communities invest in development projects and real estate.
Wabigoon Lake Ojibway Nation said the investment is part of its strategy to create opportunities for its citizens.
“This investment reflects our Nation’s commitment to building long-term economic strength and supporting institutions that align with our vision for economic development and self-determination,” Chief Clayton Wetelainen said in a statement.
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Since joining FNBC in 2023, Mr. Lomax has been focused on expanding the lender through new locations to offer retail banking and by boosting growth in its commercial lending and trust business.
In 1996, the Saskatchewan Indigenous Enterprise Foundation Inc., the Federation of Sovereign Indigenous Nations and Toronto-Dominion Bank founded the FNBC to provide financial services to Indigenous communities.
After decades of underfunding Indigenous projects and communities, financial institutions – including Canada’s biggest banks – have recently started piling into the market to provide advice and services to communities assessing energy, mining and infrastructure proposals. FNBC was an early mover in this space.
Ottawa has also been investing in Indigenous projects. In March, Prime Minister Mark Carney doubled the amount of loan guarantees available to Indigenous communities to $10-billion.
FNBC has been hiring to meet rising demand. The bank has more than 150 employees after adding about 15 new roles in the past year and will likely hire about 20 more people, Mr. Lomax said.
The bank is expanding in key markets, including B.C., where its team has grown to five employees from three in recent months.
“We are continuing to expand the on-the-ground presence of our commercial banking team and our trust team, so we will likely see more permanent folks out here in British Columbia,” Mr. Lomax said.
Editor’s note: A previous version of this article incorrectly stated that Toronto-Dominion Bank has sold its stake in First Nations Bank. TD is still an investor. The incorrect reference has been removed.