Benefits
How AIOC Loan Guarantees Mutually Support Corporate/Indigenous Partnerships
Ever since the AIOC loan guarantee program was established in 2019, its power to drive change has reverberated throughout Alberta and across Canada.
The program is helping to establish a new path toward reconciliation by providing Indigenous Nations and groups with an unprecedented and long-overdue opportunity to participate as partners in economic development.
Benefits to Industry Partners
Economic Reconciliation – Allows Industry partners to offer up equity interests in quality assets on terms that provide tangible near-term and long-term benefits to Indigenous partners.
Access to Capital – Industry partners can monetize an ownership interest in quality assets at a reasonable valuation and redeploy capital for alternative purposes.
Long-Term Equity Participation – Brings Indigenous partners and industry partners together as long-term equity owners with a shared vision in quality assets.
Enhances Operatorship – Industry partners can operate an asset with greater awareness of Indigenous priorities.
Benefits to Indigenous Partners
Access to Capital – With a loan guarantee as collateral, equity investment can be financed with funds borrowed from traditional lenders or financial institutions.
Improved Terms – Lowers interest rates and allows flexibility on terms and conditions since borrowers can rely on the Government of Alberta in the event of a loan default.
Equity Participation – Access to capital enables Indigenous partners to acquire meaningful equity interests in large acquisitions or projects.
Low Risk Investment – Qualifying acquisitions or projects are lower risk, and the loan guarantee protects the Indigenous owners in the event of a loan default.
Learn how AIOC loan guarantees are making an impact.
Creating Shared Value Through Equity Participation
Indigenous Communities
Economy & Independence
Access capital to generate long-term, sustainable revenue streams and improve quality of life
Industry
Monetize Assets & Redeploy Capital
Advances economic reconciliation and reduces regulatory delays
Lenders
Investment Profile
An important area for investors seeking portfolio diversification and ESG-based investments
Government
Reconciliation & Economic Development
Demonstrates a commitment to reconciliation while supporting economic growth
AIOC was central to our ability to complete our Project Rocket […] which was the largest Indigenous equity investment so far under this program. It was a fantastic experience.
It’s so inspiring, isn’t it? I share the vision of AIOC that Indigenous communities ought to be more prevalent in our economy — if not becoming central in our economy— especially infrastructure.
The beauty of this [avenue] is I have a double benefit. I’m able to bring money into the company and drill more wells and get more production with the proceeds, and I’m able to become partners with the communities that surround me. There’s nothing better than seeing a Wapascanis sign up on a gas plant and know that we own this together.