Indigena Capital Welcomes the Expanded Mandate for the Alberta Indigenous Opportunities Corporation

CALGARY, AB, Feb. 14, 2022 /CNW/ - Indigena Capital, LP ("Indigena Capital") welcomes the announcement by the Government of Alberta to expand the mandate for the Alberta Indigenous Opportunities Corporation ("AIOC").  The announcement earlier today will enable Indigenous Agriculture, Transportation, and Telecommunications projects to be eligible for AIOC loan guarantees.  Indigena Capital has over 35 years of history in exclusively partnering with Indigenous Communities in Canada and Tribal Nations in the U.S. ("Indigenous Communities") to break down financial barriers and bring equity capital to Indigenous Communities and their associated commercial opportunities.

"In our experience, the number one barrier that Indigenous Communities face in building their own commercial economies is access to capital, both equity and debt," said John Jurrius, CEO, Indigena Capital.  "For my entire career, I have worked to change that; government initiatives such as AIOC that make it easier for Indigenous Communities to access debt on commercial terms for commercially viable enterprises is a great step that can help unlock investment opportunities for Indigenous Communities and benefit all Albertans. However, access to debt is only one part of the equation, Indigenous Communities also need access to equity capital. It is hard to comprehend that in the 21^st century, while there are trillions of dollars of assets under management by venture and private equity firms in Canada and the U.S., not one basis point of that capital is dedicated to or specializes in serving the Indigenous space. A change is needed that enables more Indigenous Communities to partner with an experienced equity provider that understands the unique aspects of investing with their communities. To enable this change, after 35 years of sourcing over $2.5 billion privately, we have launched a fund to institutionalize bringing equity to this space."

Indigena Capital has consistently come up with solutions to demonstrate to the financial community that the Indigenous space is investable, while advocating for broader mechanisms to be created to aid the process and understanding.

"Throughout our history, we have been able to create solutions to secure debt at market terms for our projects, but those solutions can take months or even years, time that could be better used deploying capital into Indigenous Communities' projects, which will spur economic growth for the Community," said Christine Robertson, President, Indigena Capital.  "Initiatives such as AIOC can help enable Indigenous Communities to access debt more efficiently for their projects, while broadening awareness in the financial system to the benefits of investing in Indigenous commercial projects."

Indigena Capital's CEO John Jurrius was one of the first to secure a non-recourse loan for a U.S. Indigenous Nation's ("Nation") project in 1994.  He later, while working on behalf of a Nation, secured a AAA credit rating for that Nation partner from Moody's and Fitch, making that Nation one of only 13 sovereigns in the world at the time to achieve a AAA rating, which they still hold today.  In Canada we challenge the default on-Reserve lending model that has Indigenous Communities issue a parent guarantee in order to source commercial financing.  Changing this paradigm is necessary but adds considerable delay and inefficiency to financings.  Indigena Capital is optimistic that the expanded mandate for AIOC will enable Indigenous Communities to access debt on market terms more efficiently, which would in turn enable Indigena to deploy more equity capital with Indigenous Communities in Alberta.

About Indigena Capital:
Indigena partners with Indigenous Communities to assess their unique rights and resources, investing early-stage capital to assist them in taking an active role in development. Indigena has specialized in partnering exclusively with Indigenous Communities in Canada and Tribal Nations in the United States of America for over three decades. Through disciplined capital allocation, the return expectations of investors can be met while creating the foundation for self-sustaining economies for Nations. www.indigenacapital.com

SOURCE Indigena Capital

Justin Ferguson, VP, Indigena Capital, [email protected], 403.992.0498