Royal Bank Launching Practice to Serve Canadian Indigenous-Owned Major Projects, Investments

Published: 2026-04-30 11:26:27 ET RY.TO

Published on 04/30/2026 at 11:26 am EDT

By Robb M. Stewart

Royal Bank of Canada is creating a specialized practice that aims to ensure indigenous-owned major projects and other investments in the country have expanded access to capital.

The bank, Canada's biggest by market value and one of the largest in North America by assets, said the new operation will work with indigenous nations in Canada through advisory services, financing and capacity-building programs.

RBC also plans to work with indigenous partners to host finance-leadership circles starting this fall, meetings that will look to support nations in building financial-management and governance expertise and in unlocking new pathways to capital.

The new practice is being rolled out as Canada looks to strengthen its economy following the U.S. administration's abrupt shift toward protectionist policies and the levying of tariffs on imported goods. Federal and provincial governments have pledged to make it easier to get big resources and infrastructure projects in Canada started, and Ottawa is hoping to lure massive investment.

RBC earlier this month unveiled plans to fund and launch a growth fund that would deploy up to 1 billion Canadian dollars, the equivalent of about US$731 million, over the coming years to help companies build and scale in Canada.

Analysis published Thursday by RBC that examined indigenous loan-guarantee programs in Canada found persistent structural challenges, including gaps in banking, reach, scale, geography and equity.

Shaz Merwat, author of the report, said the next wave of projects in Canada, including capital-intensive liquefied natural gas and higher-risk mining, present risk that loan-guarantee programs weren't designed to manage on their own. Many of the projects that will be central to Canada's economic plans require indigenous participation before commercial viability is established, yet guarantee programs currently activate at financial close, he said.

That, Merwat said, creates a timing gap where programs activate too late but communities need support up front. This first-mile problem is arguably the most important gap in the current architecture, he said.

A Bank of Canada survey of indigenous firms found 8% of indigenous businesses use institutional loans as their primary financing source, compared with 31% of nonindigenous small businesses. Similarly, indigenous and nonindigenous loan-approval rates run at 58% versus 90%, respectively.

"We know that securing and attracting capital to major projects requires Indigenous nations and communities as true equity partners said RBC President and Chief Executive Dave McKay, who announced plans for the new practice at the First Nations Major Projects Coalition Conference in Toronto.

McKay in a speech said the country needs C$1.8 trillion in capital investment over the next decade to meet its economic potential, which includes financing major projects. With most major projects on or next to indigenous lands, he said it is critical that indigenous partnership is at the heart of loan guarantee programs.

Mark Podlasly, CEO of the conference, said that for too long indigenous equity participation in major projects wasn't even on the table. The conference represents nearly a third of all indigenous nations in Canada nations that are ready to be involved in projects that are environmentally and economically inclusive, he said.

Write to Robb M. Stewart at [email protected]

(END) Dow Jones Newswires

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