BMO issues $200M Indigenous bonds offering

Canadians holding stakes in bond funds with a sustainability mandate – like sustainable bond funds or green bond funds – could soon own a piece of the first Indigenous-labelled bond.

BMO issued the first offering of Indigenous-labelled bonds by a North American commercial bank on Oct. 23. The proceeds will be allocated toward Indigenous-owned enterprises and Indigenous communities for green, social, or transition initiatives.

However, it is not the first time a financial authority has offered an Indigenous-focused bond. Since 2014, the First Nation Finance Authority (FNFA) has issued $2.6 billion worth of debentures.

FNFA products are labelled debentures, but they function like bonds, as they are secured debt.

According to the First Nations Major Projects Coalition, at least $50 billion will be needed over the next 10 years to finance Indigenous equity investments in major projects on Indigenous land, which is worth a combined $630 billion.

In Budget 2023, the Government of Canada introduced the Indigenous Loan Guarantee Program. In December 2024, the Government launched the Canada Indigenous Loan Guarantee Corporation, which guarantees loans ranging from $20 million to $1 billion.

On March 21, 2025, Prime Minister Mark Carney doubled funding from $5 billion to $10 billion, opening it to sectors outside of energy and natural resources.

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