CANADA Trends and Developments Contributed by: Mahdi Shams, Kevin Sorochan, Joshua Krane and Scott Masson, MLT Aikins
Indigenous Loan Guarantee Program The federal government launched the Indigenous Loan Guarantee Program this year. The government started with CAD5 billion and doubled it to CAD10 billion in March 2025. The Canada Indigenous Loan Guarantee Corporation can back loans from about CAD20 million to CAD1 billion for Indigenous groups so they can finance equity ownership in major pro- jects. The goal is to accelerate Indigenous ownership in projects that are being built in Canada. In practice, the guarantees allow Indigenous partners to finance larger equity positions with guaranteed sen- ior debt at materially lower interest rates than alterna - tives. That reduces the weighted average cost of capi- tal at the project level. It also stabilises governance because guaranteed loans come with clear reporting and covenant packages that map cleanly into project finance documents. On 15 May 2025, the programme announced its first deal. A partnership of 36 First Nations agreed to acquire a 12.5% interest in Enbridge’s Westcoast natural gas pipeline system. The Canada Indigenous Loan Guarantee Corporation supported the transac- tion with a CAD400 million guarantee. The total Indig- enous equity investment was about CAD715 million. This file demonstrates the model at work in core ener- gy infrastructure. Provinces are building complementary programmes, which let sponsors braid federal support with provin- cial tools and commercial debt: • Alberta increased the Alberta Indigenous Opportu- nities Corporation capacity to CAD3 billion. • British Columbia adopted a First Nations Equity Financing Framework with a CAD1 billion provincial limit. • Ontario tripled its Indigenous Opportunities Financ- ing Program to CAD3 billion and broadened eligible sectors to energy, pipelines, mining and critical minerals.
• Saskatchewan’s Indigenous Investment Finance Corporation provides guarantees with minimum sizes of CAD5 million and has backed recent renewables transactions. • Manitoba launched a CAD300 million programme in Budget 2025 and has linked it to energy devel- opment through procurement. Conclusion In summary, Canadian M&A activity is adapting rath- er than pausing. Deal design now aims to place a greater emphasis on deal certainty with additional or new closing conditions or more restrictive terms. In a market shaped by shifting trade rules and tighter screening, outcomes favour planning, evidence and disciplined execution. At the same time, recent developments are attempting to help accelerate transactions. For major projects, the MPO can shorten timelines and remove uncer- tainty, which may lead to larger-scale projects mov- ing forward. Some parties are even using AI tools in the process to accelerate document review, financial analysis and due diligence. Financing has adjusted to the same conditions. Capi- tal availability has largely returned in the latter half of 2025 and is expected to persist into 2026. Public financing programmes are scaling to advance projects of national importance, while private credit fills timing gaps and holds acquisitions together through longer approvals. As the geopolitical environment continues to evolve, Canadian M&A will likely tilt further toward nationally focused, policy-aligned transactions that strengthen domestic supply chains and critical infrastructure. More deals will feature Canadian co-investment, larger Indigenous ownership stakes and financing structures built around dated milestones and public programmes.
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