22 Oct Stonebridge Financial

Stonebridge Financial’s Indigenous Economic & Social Impact 

Overview:  

Founded in 1998, Stonebridge Financial is a regulated financial services and investment management firm focused on providing responsible private debt and capital solutions. Its core areas of focus include financing social infrastructure, renewable energy, long-term care, real estate, among other sectors via debt funds, managed accounts and other relationships it has with institutional investors.  What sets Stonebridge Financial apart is its early recognition of the gap in the marketplace for financing Indigenous-owned projects, long before recent movements toward reconciliation and responsible finance became widely recognized.  

A Firm of Firsts:  

Stonebridge Financial launched Canada’s first infrastructure debt fund in 2012 (Stonebridge Infrastructure Debt Fund I or “SIDF I”) with over $200 million in institutional investor commitments. This was followed by its second debt fund in 2014 (“SIDF II”), which has grown to be nearly $600 million. Stonebridge Financial’s first fund allocated 40% of its loan commitments to projects with Indigenous ownership, including a five-megawatt solar project in Ontario for Alderville First Nation in 2012, making Stonebridge the first lender to finance a 100% Indigenous-owned project in Canada. Building on this success and experience, the larger second fund, allocated 36% of its commitments to Indigenous projects.  

Key Highlights of Stonebridge Financial’s Activities: 

• Social Infrastructure & Sustainable Energy: Stonebridge Financial’s portfolio emphasizes lending private capital towards the creation and support of sustainable, community-focused projects, such as healthcare infrastructure and renewable energy, which align with Indigenous values of community well-being and long-term environmental stewardship.  
• Indigenous Ownership & Community Benefits: Stonebridge Financial’s project loans have delivered tangible, measurable benefits to Indigenous communities, where such groups have benefitted from partial, majority or sole ownership of such projects. Aside from various clean energy projects such as wind, solar and hydro across the country, Stonebridge Financial recently financed a high-speed broadband installation in Northern Ontario, which will provide 14 remote Indigenous communities better access to information. By improving connectivity in these remote areas, they are enabling Indigenous residents and businesses to thrive with better access to such essential services.  

• Crowding-In Private Capital: One of the challenges Indigenous communities face is the perceived risk of investment in such projects. Stonebridge Financial has helped bridge this gap. Its funds have helped “crowd-in” new sources of capital from various institutions, including insurance companies, pension funds, government agencies, municipalities, universities and foundations. Investing via such funds aids in the development of new Indigenous and other infrastructure projects across Canada while providing such institutional investors with access to a lending market they would not be able to access otherwise.  

Impact of Stonebridge Financial’s Efforts:  

Since 2012, Stonebridge Financial has arranged financing for a total of 24 Indigenous infrastructure projects to date, delivering economic and social benefits to over 40 Indigenous groups across Canada. Loans totaling more than $750 million have funded the construction and operation of Indigenous owned clean energy projects, providing long-term cash flows which are reinvested back into these communities. The projects have also created jobs with Indigenous communities, both during project construction as well as throughout their operations.  

Challenges & Opportunities:  

One of the most pressing challenges in Canada is the need for more infrastructure of all forms, including within Indigenous communities. These include clean energy, transportation, healthcare and digital infrastructure projects. Similarly, there is a need to rehabilitate and expand existing infrastructure. There will be ample opportunities for Indigenous communities to participate in such projects.  Ongoing collaboration and blended finance structures involving Indigenous groups, governments, and private capital are key to ensuring more Indigenous projects come to fruition. 

The Future of Indigenous Economic Reconciliation:  

Stonebridge Financial is committed to continuing its role in Indigenous economic growth. As Stonebridge Financial celebrates its 25th anniversary, it is set to launch its third infrastructure debt fund, Stonebridge Infrastructure Debt Fund III (“SIDF III”), targeting $1 billion in commitments. This new fund will continue supporting projects with Indigenous ownership, building on Stonebridge Financial’s success to date and reinforcing its position as a leading lender to social infrastructure, sustainable energy and Indigenous investments. 

Summary:  

Stonebridge Financial has made a significant impact to the growth of the Indigenous economy in Canada’s infrastructure landscape and facilitated Indigenous economic participation in such projects. Today, Indigenous ownership and involvement are becoming commonplace, a shift that Stonebridge Financial has been an early and ongoing supporter of. As the Indigenous economy continues to grow, Stonebridge Financial’s role in facilitating these developments remains impactful, contributing to a future of shared prosperity and reconciliation. This is Indigenomics in action.  

Learn more at: Stonebridge.ca