The Canada Indigenous Loan Guarantee Program (CILGP) has backed Aamjiwnaang and Kettle and Stony Point First Nations’ efforts to become co-owners of the Chatham to Lakeshore Hydro One transmission line.

CEO Kristan Straub made the announcement during an event organized by independent think tank Canada 2020.

This marks the second loan issued by the federal corporation since its 2024 launch. The first loan, issued last May, enabled 36 First Nations in British Columbia to acquire a 12.5 per cent ownership interest in Enbridge’s Westcoast natural gas pipeline system.

CILGP was designed to help dismantle systemic barriers rooted in the Indian Act that have historically prevented Indigenous groups from leveraging assets to secure capital and financing.

The Carney government doubled the envelope from $5 to $10 billion in the last federal budget, hinting the corporation will be a player when it comes to coordinating financing on major projects.

Aamjiwnaang and Kettle and Stony Point First Nations are not disclosing numbers for the loan guarantee, but the financing enabled a 20 per cent equity stake in a transmission line valued at approximately $237 million.

In a statement, chiefs Janelle Nahmabin and Kimberly Bressette say the financing model “eliminated the need to utilize community dollars” and will offer stable, predictable returns for decades.

“This was a low-risk investment and will provide funds to each Nation for the next 50 years,” they wrote.

Three other First Nations have bought a 10 per cent equity stake in the transmission line, under Hydro One’s 50-50 equity partnership. That includes Caldwell First Nation, who secured financing through Manulife and a $45-million guarantee from the Ontario Indigenous Opportunities Financing Program.

The Chatham to Lakeshore transmission line is the second Hydro One project to proceed as a 50-50 equity partnership with First Nations. Northwestern Ontario’s Waasigan line was the first one.

Straub tells iPolitics there are many more transactions in the pipeline, and the CILGP looks forward to making announcements in the coming months.

Asked if these deals are also linked to transmission lines, Straub said, “I can say what’s coming is different from what we have seen before.”