Friday, May 16, 2025
Canada Development Investment Corporation (CDEV), through its subsidiary, Canada Indigenous Loan Guarantee Corporation (CILGC), announced the provision of a loan guarantee in connection with a landmark transaction to be completed pursuant to an agreement between 36 First Nations in British Columbia (Stonlasec8 Indigenous Alliance Limited Partnership ) and Enbridge for the partnership to own 12.5 per cent ownership interest in Enbridge’s Westcoast natural gas pipeline system.
“This loan guarantee is a testament to our commitment to fostering Indigenous economic reconciliation and ensuring that Indigenous Peoples have a meaningful stake in Canada’s economic growth,” said François-Philippe Champagne, Minister of Finance. “We are proud to support First Nations in B.C. in this historic endeavour.”
The transaction is expected to close by the end of the second quarter of 2025, subject to the completion of required financing and the satisfaction of all conditions precedent to the transaction.
“Enbridge’s commitment to advance Indigenous ownership opportunities related to our existing and growing energy assets underlines our efforts to be the First Choice partner for the communities we serve. These partnerships – which are part of our Indigenous Reconciliation Action Plan – allow Indigenous communities to beneficially invest in our operations and play a greater role in shaping Canada’s energy future,” said Greg Ebel, Enbridge’s president and CEO. “This transaction is one of several such partnerships we have undertaken in the last several years and we continue to explore additional opportunities for Indigenous partnerships.”
The group of First Nations is expected to, through support of a $400-million loan guarantee issued under the Indigenous Loan Guarantee Program (ILGP), make an equity investment of approximately $715 million in Enbridge’s Westcoast natural gas pipeline system.
“Today is a significant milestone for Stonlasec8 First Nations and we are incredibly grateful to have the Government of Canada’s leadership and support to bring this deal to fruition,” said Chief David Jimmie, president and chair of Stonlasec8 and Chief of Squiala First Nation. “Enbridge’s Westcoast pipeline system is a legacy asset that has operated within our traditional territories for over 65 years. Now, our Nations will receive sustained economic benefits from this asset, funding critical investments in housing, infrastructure, environmental stewardship, and cultural preservation. People often ask what economic reconciliation for Indigenous Peoples looks like. This is it.”
“I want to thank everyone who contributed to making this historic and highly complex transaction possible. Today’s announcement also underscores CDEV’s role as a catalyst for transformative initiatives that benefit all Canadians,” said Elizabeth Wademan, President and CEO of CDEV, the parent company of the CILGC. “We launched CILGC in record time with a commitment to operate at the speed of business. The CDEV team is proud of the leading role it played on this transaction, and for the partnership created through this deal.”
RBC Capital Markets acted as financial advisor to Enbridge and McCarthy Tétrault as legal counsel. TD Securities Inc. acted as financial advisor to the First Nations Partnership, Boughton Law as legal counsel and MNP as business and tax advisors.
Featured image: (Enbridge)
