FNFA was built to provide First Nations with the same access to the capital markets afforded to other levels of government. The enabling legislation, the FNFMA, sets out the powers and the regulatory framework for First Nation borrowing through FNFA that mirrors the features of investment-grade rated government borrowing authorities around the world.

Large governments, such as national and provincial governments, major cities, and utilities have the capacity to manage their own public borrowing and have built the institutions to finance their infrastructure needs by going to the capital markets directly with highly rated government bonds.

Smaller regional and local governments, however, do not have the financial size, or the credit ratings necessary to access capital markets directly.

For First Nation governments, Chiefs and Councils can agree to work together as a pool of borrowers. In this way the member loans, although mostly smaller, can aggregate to a larger size. The capital market investors make it possible to access commercial rates – a significant benefit to our communities.