A sign at the site of the proposed Indigenous-led Cedar LNG facility near Kitimat, B.C. in 2023. A federal agency has hired the board chair for an Indigenous loan guarantee program, and is in the process of hiring a CEO.Jesse Winter/The Globe and Mail
The new federal agency charged with administering a $5-billion Indigenous loan guarantee program has selected the first member of its leadership team.
Michael Bonshor, president of Vancouver-based Visions First Nations Financial Services and a member of the Dzawada’enuxw First Nation of Kingcome Inlet, B.C., will serve as board chair of the Canada Indigenous Loan Guarantee Corporation (CILGC).
According to a statement published Monday morning by the Canada Development Investment Corporation (CDEV) – the Crown corporation that established the CILGC as a subsidiary in December – Mr. Bonshor’s appointment was effective as of March 10.
Tasked with providing $5-billion in loan guarantees for Indigenous communities across Canada looking to make major economic investments, the CILGC is the result of more than a decade of lobbying by a growing number of Indigenous-led capital markets institutions.
The program is seen as necessary because the federal Indian Act prevents Indigenous Canadians from owning reserve land. Reserves are legally considered Crown land that has been designated for Indigenous use, meaning they cannot be used as collateral for loans.
According to the First Nations Major Projects Coalition, Indigenous communities will need access to at least $585-billion in capital over the next 20 years to meet the demand for investing in projects at various stages of development on their lands. Since the coalition was established in 2015, its members have already purchased equity stakes or started investment discussions in 19 infrastructure projects across the country that are collectively worth more than $45-billion.
Mr. Bonshor declined a request for an interview on his new role. In the CDEV statement, he said he was “committed to fostering a path to prosperity that respects the unique needs and priorities of the Indigenous Peoples and create opportunities that will build prosperity and benefit generations to come.”
In addition to serving as the inaugural chair of the CILGC, Mr. Bonshor is also chair of the boards of directors of the British Columbia Institute of Technology, the National Indigenous Economic Development Board’s economic progress report committee and the Dzawada’enuxw Development Corporation. He is also a chartered professional accountant.
CDEV hired Indigenous recruitment firm Pathways Executive Search to find Mr. Bonshor. Pathways is also currently recruiting a chief executive officer for the program.
CDEV spokesperson Thomas Chanzy declined to say how many applicants were being considered for the CEO job or when someone will be hired, but said “there has been strong interest from highly qualified candidates from across the country” and that a selection should be made “in the coming months.”
In the three months since the CILGC was established and started accepting applications, Mr. Chanzy said CDEV has responded to dozens of requests for more information. The agency has so far done outreach for the program at the Prospectors & Developers Association of Canada (PDAC) conference in Toronto, an Assembly of First Nations (AFN) natural resources forum in Vancouver and an economic development conference in Thunder Bay.
“We are currently working actively on several applications, and we are confident that we will issue a first loan guarantee this year,” Mr. Chanzy said.