TC Energy announces Canada's largest Indigenous equity ownership agreement

Core Insights - Alberta Indigenous Opportunities Corporation (AIOC) has provided a $1 billion loan guarantee to support an Indigenous-owned investment partnership, marking a significant step towards economic reconciliation and sustainable growth for Indigenous Communities [14][18][19] - The partnership involves a minority equity interest of 5.34% in TC Energy's NGTL System and Foothills Pipeline assets, with an implied enterprise value of approximately $1.65 billion [14][15] - The agreement is expected to create long-term revenue streams for up to 72 Indigenous Communities, enhancing their economic sovereignty and participation in Canada's resource economy [15][16][20] Investment Details - The transaction is backed by a $1 billion equity loan guarantee from AIOC, facilitating the formation of the Indigenous-owned investment partnership [18][19] - The transaction is anticipated to close in the third quarter of 2024, pending approvals from participating Communities [9] - The partnership is structured to allow each Community to exercise self-determination regarding their participation [9] Strategic Importance - The partnership represents a significant evolution in TC Energy's relationship with Indigenous Peoples, aligning with broader industry efforts towards reconciliation [8][16] - The NGTL System and Foothills Pipeline are critical infrastructure assets that connect approximately 80% of natural gas production from the Western Canadian Sedimentary Basin to domestic and export markets [20][21] - The partnership is expected to provide predictable and long-term cash flows, enhancing the financial stability of the involved Indigenous Communities [21]