First Nations Bank closes $35.8M raise, selling a tenth of itself to Mississaugas of the Credit
What's the deal? First Nations Bank of CanadaDealroom has a profile for this one. Try Dealroom → (FNBC) has closed a US$36.7-million equity financing, capped by a US$11-million investment from the Mississaugas of the Credit First Nation. The raise — roughly $35.8 million — makes the Nation one of the bank's largest shareholders, with about a 10% stake.
What's the endgame? FNBC, the only Indigenous-owned chartered bank in Canada, provides commercial and personal banking to Indigenous and non-Indigenous clients. It says the new capital will expand its lending capacity and support opportunities in Indigenous business, infrastructure, and economic development.
Why now? The bank's loan book grew 26% in its latest fiscal year, and it reports a backlog of applications. It expects the equity to underpin at least $400 million in additional commercial lending.
The deal also deepens the ownership model: FNBC will now be held by 117 First Nations and Indigenous communities, more than 90% of its register. "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," said Chief Margaret Sault of the Mississaugas of the Credit.
By the numbers: FNBC operates 22 branches and service centres and manages more than $1.6 billion in assets. Its trust subsidiary, FNB Trust, holds $5.57 billion in assets under administration. The $50 million raised since 2024 exceeds all the capital the bank raised from its 1996 founding through 2023.
"Today, we are building a growing national bankDealroom has a profile for this one. Try Dealroom →, supported by First Nations and Indigenous shareholders from across the country, and well positioned to pursue the significant opportunities ahead," said chief executive officer Bill Lomax.
The signal: The raise lands amid a broader push to expand Indigenous access to capital. In April, the Canada Infrastructure BankDealroom has a profile for this one. Try Dealroom → and Peace Hills TrustDealroom has a profile for this one. Try Dealroom → announced a $50-million loan-participation agreement for community development, and in May, Hydro-QuébecDealroom has a profile for this one. Try Dealroom →, the Canada Infrastructure Bank, and National Bank launched a financing program of more than $5 billion for Indigenous participation in wind projects. FNBC's deal is notable for channelling Indigenous community investment into an Indigenous-owned lender.
Read more: ca.finance.yahoo.com
Image credit: Ken Lund
