BMO issues North America’s first bond aimed at raising funds for Indigenous businesses

The Cedar LNG project under construction in Kitimat, B.C., in August. The project is the first Indigenous majority-owned LNG facility in the world.

Bank of Montreal is offering a new way to finance Indigenous companies and communities.

Late Thursday, the lender issued what it believes to be North America’s first Indigenous-labelled bond, and said proceeds from the $200-million offering will be allocated to Indigenous-owned businesses and communities across Canada.

The novel debt product, which is expected to close on Oct. 27, is the latest in a series of new financial resources being developed for Indigenous economic development. Many of those efforts are focused on funding Indigenous equity participation in major infrastructure projects.

Any Canadian investor holding a stake in bond