Management Discussion and Analysis

AIOC is pleased to provide an overview of our performance,
strategic initiatives, and outlook for the future.

1. Corporate Overview

AIOC was established with the primary mandate of facilitating economic development and investment opportunities for Indigenous communities in Alberta. The corporation acts as a catalyst by providing financial backstopping, expertise, and partnership opportunities to support Indigenous investments across multiple sectors within our mandate: natural resources, agriculture, transportation, telecommunications, tourism, and related infrastructure.

2. Financial Performance

During the fiscal year 2024/25, AIOC provided two loan guarantees totaling $67 million. To remain financially prudent and fiscally responsible, AIOC continues to evaluate project proposals based on creditworthiness, commercial viability, and appropriate risk and reward.

3. Project Highlights

AIOC provided loan guarantees for two noteworthy investments. The first loan guarantee supported Wapiscanis Waseskwan Nipiy to upsize its $150 million investment in certain midstream assets to $195 million, which facilitated the inclusion of one additional Indigenous group into the partnership. The second loan guarantee was for $22 million, enabling Cold Lake First Nations (CLFN) to purchase an equity interest in the Duchess Solar project. This is AIOC's first loan guarantee in the renewable energy sector.

4. Strategic Initiatives

AIOC continued to focus on strategic initiatives aimed at achieving long-term sustainability and growth. Some key areas of focus included:

  1. Partnership development: AIOC actively sought partnerships with government agencies, private sector entities, and Indigenous communities to leverage expertise, and resources. These collaborations enhanced the capacity of Indigenous communities and increased the success rate of projects.
  2. Comprehensive project evaluations: AIOC continued to evaluate projects, with a focus on creditworthiness, commercial viability, and appropriate risk and reward for the Indigenous communities. AIOC also continued to focus on high quality assets and transaction structures that could support what is often 100% leverage while the AIOC-guaranteed loan is outstanding. There remains no loan losses or indications of loan impairment to date.
  3. Engagement: AIOC continued to focus on open engagement with Indigenous communities and key stakeholders. AIOC conducted regular meetings, presentations, and information sessions to ensure that projects align with community values, cultural heritage, and sustainable development goals.
  4. Access to capital: AIOC was able to modify its form of loan guarantee to obtain a credit rating from Dominion Bond Rating Service of “AA with a stable trend” supporting attractive financing costs via a large transaction that ultimately didn’t proceed due to structural issues unrelated to the Indigenous Consortium. On the same project, approximately 30 financial institutions learned more about AIOC and agreed to be buyers of the $1 billion bond that was planned for this transaction. Despite the transaction not closing, these important achievements are expected to benefit future transactions.

5. Outlook and Future Plans

Looking ahead, AIOC remains committed to its mission of fostering economic development and investment opportunities for Indigenous communities. With an enhanced mandate, AIOC will continue to prioritize meaningful engagement, long-term sustainability and growth while working through the active funnel of opportunities to support Indigenous investment in Alberta.

In conclusion, Alberta Indigenous Opportunities Corporation made significant progress in its mandate to support Indigenous communities through equity ownership initiatives. AIOC's fiscal responsibility, project highlights, strategic initiatives, and commitment to partnership and community engagement position us well for future success. AIOC remains dedicated to supporting Indigenous investments in medium and large-scale projects across a variety of sectors and driving meaningful change for Indigenous communities and all citizens of the province of Alberta.

Accountability Statement

Alberta Indigenous Opportunities Corporation’s (AIOC) Annual Report for the period ended March 31, 2025, was prepared under the Board of Directors’ direction in accordance with the Planning and Reporting Guide, and the ministerial guidelines established pursuant to the Alberta Public Agencies Governance Act (APAGA) and the Sustainable Fiscal Planning and Reporting Act. All material economic, environmental or fiscal implications, of which we are aware, have been considered in preparation of this report.

Annual Statement of Governance Practices

Alberta Indigenous Opportunities Corporation (AIOC) is committed to the highest standards of corporate governance, accountability, and transparency. The governance framework is designed to ensure effective oversight, strategic guidance, and prudent stewardship of public resources.

This statement provides an overview of AIOC’s governance framework and our commitment to transparency and ethical practices.

Board of Directors

  • Highly qualified and diverse Board composition with a range of skills, experiences, and backgrounds relevant to AIOC’s mandate.
  • All directors are fully independent of management.
  • Three standing committees support specialized oversight and expertise. Each committee has a clear mandate and work plan and reports to the Board after each meeting.

    - Audit and Risk

    - Governance and Human Resources

    - Investment

  • Regular performance assessments and director development programs. Feedback from the performance assessment process informs governance improvements and director development.
  • Director appointments are made with the intention of creating a board comprised of individuals who, in the aggregate, have the full range of proven skills, knowledge and experience necessary to effectively oversee AIOC in achieving its objectives.

Roles and Responsibilities

  • Board sets strategic direction, oversees risks, and monitors performance.
  • Management handles day-to-day operations, executing the Board's direction.
  • Strategic Planning and Performance Monitoring: The Board actively engages in strategic planning and regularly monitors progress toward strategic goals.
  • Directors are required to act honestly and in good faith with the best interests of AIOC and are required to exercise care and diligence, and manage risk appropriately in their oversight of AIOC.

Risk Management

  • Board ensures effective risk management processes.
  • Risk Appetite and Tolerance: The Board approves and defines the level and types of risk AIOC is willing to accept. This helps align strategic initiatives with prudent risk-taking.
  • A structured and integrated Enterprise Risk Management (ERM) framework is in place to identify, assess, manage, and monitor the full range of strategic, operational, financial, compliance, and reputational risks. Risk exposure and mitigation progress are reported through the Audit and Risk Committee.
  • Business Continuity Plan: AIOC maintains a robust business continuity plan and a crisis response protocol. These are tested through tabletop exercises and simulations to ensure readiness.
  • Strong internal controls for asset safeguarding and reliable reporting.

Governance Practices

  • Code of Conduct: AIOC maintains a Code of Conduct applicable to directors, management, and employees.
  • Conflict of Interest: Directors, management, and employees are required to disclose any real or perceived conflicts of interest and recuse themselves from related discussions and decisions.
  • A strong commitment to transparency and accountability including timely and accurate financial reporting and open communication with stakeholders.

Whistleblower Statement / Policy

There were no disclosures of wrongdoing filed
between April 1, 2024 and March 31, 2025.