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          Month: December 2012

          Osoyoos FNFMB

          Posted on by Stephen Blancher

          For Immediate Release:

          Osoyoos Indian Band will use $5.8 million in new, affordable financing to further community development

          WEST VANCOUVER, B.C. (December 14, 2012) – The First Nations Financial Management Board (FNFMB) and the First Nations Finance Authority (FNFA) congratulate the Osoyoos Indian Band (OIB) on their certification by the FNFMB. OIB can now access more affordable, longer-term financing to support further community economic and social development.

          Osoyoos is a successful and progressive community. The OIB owns and manages numerous successful businesses that have created extensive social and economic opportunities in the community and throughout the South Okanagan region of B.C. By using the services offered through the FNFMB and FNFA, OIB is able to advance the community’s social and economic development plans more quickly, which in turn supports their goal of self-reliance.

          “Becoming certified by the First Nations Financial Management Board illustrates Osoyoos’ commitment to strengthening their financial management systems and putting policies and procedures in place gives all stakeholders confidence,” said FNFMB Executive Chair, Harold Calla.

          “Financing through FNFA benefits First Nation communities to access loans at fixed rates, over longer amortization terms, within a pooled borrowing setting,” explained Ernie Daniels, CEO of the FNFA.

          OIB was certified by the FNFMB, and then secured a $5.8 million loan from FNFA on November 30, 2012 to refinance existing debt. Lower interest rates will result in potential savings of approximately $144,000 a year. Ultimately, this certification provides OIB a much more financially stable environment to work with investors and on projects within their community over a longer period of time.

          “I have long been a supporter of First Nations financial institutions and more equitable access to capital for reserves. We need this to be able to pursue investment like other communities in Canada,” said Chief Clarence Louie, who is also CEO of the Osoyoos Indian Band Development Corporation.

          “I am an advocate of what the FNFMB Certification brings to First Nation Communities in Canada. It gives First Nations the ability to access financing like any other Government in Canada,” said Brian Titus, Chief Operating Officer of the Osoyoos Indian Band Development Corporation. “It has allowed us to use these funds for refinancing existing debt, build infrastructure, and develop new business relationships and create Jobs. This is a new era in First Nation financing.”

          The First Nations Fiscal and Statistical Management Act (FSMA) is federal legislation designed to provide affordable financing for First Nations who choose to opt-in to the legislation.

          The FNFMB and FNFA are First Nations-led fiscal institutions, created under the FSMA. The FSMA establishes a system of pooled borrowing that First Nations can use to respond to their needs for debt to support economic development in their traditional territories.

          The FNFMB is a non-profit institution that assists First Nations choosing to go through the certification process. FNFMB certifies financial management systems and financial performance of First Nations based on FNFMB standards, which are consistent with internationally recognized internal control frameworks.

          The FNFA is a non-profit entity that is governed by a board of directors made up of representatives of the First Nations who make up the borrowing pool created by the FNFA.

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          For further information:

          Harold Calla
          Executive Chair
          First Nations Financial Management Board
          Telephone: (604) 925 6665
          Cell: (604) 313-2699

          Ernie Daniels
          CEO
          First Nations Finance Authority
          Telephone: (250) 768-5253 ext. 112

          Press Release – Tzeachten Sept 14, 2012

          Posted on by Stephen Blancher

          FOR IMMEDIATE RELEASE

          BELOW BANK PRIME FINANCING ACCESSED BY TZEACHTEN FIRST NATION

          On September 14, 2012, Tzeachten First Nation became the second First Nation in Canada, working under the FSMA (the First Nation Fiscal and Statistical Management Act), to access loan financing at rates below bank prime. Tzeachten’s loan rate is 2.50%.

          Tzeachten Chief Glenda Campbell commented:

          “Never in my lifetime did I think there would come a time that Tzeachten would have access to affordable financing to enable us to complete multiple capital projects all at one time and on our terms and to be able to utilize those funds for transactions such as land acquisitions.”

          The FSMA is a voluntary piece of legislation open to all First Nations across Canada. After requesting to be scheduled from the Hon. John Duncan, Minister of Aboriginal Affairs and Northern Development Canada, each First Nation works with the FMB (First Nations Financial Management Board) to get certified. Once certified, the First Nation is eligible to become a FNFA (First Nations Finance Authority) borrowing member and can request loans from the FNFA.

          FMB’s executive Chair, Harold Calla stated:

          “Tzeachten demonstrates how becoming certified by the FMB translates into real community benefit. They have committed to strengthening their financial management systems by putting policies and procedures in place that gives all stakeholders confidence. This step will help them achieve the long term vision they have for their community.”

          The FNFA, working closely with the Bank of Montreal, issued the loan to Tzeachten under its Interim Financing program. These loans are short term in nature and will be rolled into longer term, fixed-rate loans when FNFA’s loan portfolio is a sufficient size. Ernie Daniels, FNFA’s CEO added:

          “One of the benefits of borrowing through the FNFA for First Nation communities is access to fixed interest rates, over longer amortization terms, up to 30 years, within a pooled borrowing environment. This results in a major reduction in their annual debt service requirements.” What this means for Tzeachten is “because of the favourable repayment terms being offered through FNFA, what we currently pay out to debt service a $1 million loan will leverage almost $3 million once refinanced, which makes it that much more affordable for us to complete the additional projects we have targeted this year”, says Chief Glenda Campbell.

          Sean Armstrong, Vice President, BC Interior, North and Yukon for BMO Bank of Montreal said:

          “BMO is proud to be at the forefront of another ground-breaking initiative in Aboriginal Banking by providing a second tranche of loans to the FNFA which will then re-advance the funds to the Tzeachten First Nation. Similar to the Municipal Finance Authority of British Columbia, the First Nations Finance Authority will provide capital market financing for infrastructure projects for First Nations across the country. The potential is huge for smaller, more remote First Nations to have access to capital through the FNFA for important infrastructure programs such as roads, water and sewage systems and buildings. This funding will assist in creating economic wealth, jobs and ultimately will provide a better quality of life for First Nations and their membership.”

          For more information contact:

          Harold Calla, Executive Chair
          First Nations Financial Management Board
          PH: (604) 925-6665

          Chief Glenda Campbell
          Tzeachten First Nation
          PH: (604) 858-3888

          Ernie Daniels, President/CEO
          First Nations Finance Authority
          PH: (250) 768-5253