Mr. Chair, 14 first nations across Canada participated in the first nations finance authority inaugural bond of $90 million, as the member referenced. The proceeds of the bond are financing much needed infrastructure on reserve and refinancing existing costly bank loans.
The community of Membertou in Nova Scotia raised $21 million through the bond, and by using the proceeds to refinance existing commercial loans, it is saving $1.7 million in annual interest costs. These savings are being reinvested into the community.
St. Theresa Point First Nation, a fly-in community in northern Manitoba, was certified by the financial management board and was able to get out of third-party management. As a participant of the bond, it reduced its borrowing costs from rates approaching 20% to under 4%, placing them in sound financial shape.
Working with the network of aboriginal financial institutions, AANCD has supported the lending of over $2 billion to more than 38,000 aboriginal entrepreneurs to finance business startups, acquisitions and expansions, and the $2 billion threshold was reached in 2014-15.