Investment Process

Our Investment team works with public and private sector project sponsors to customize investment solutions. We attract and leverage private sector and institutional investment in revenue-generating infrastructure which benefit Canadians.

We consider multiple financial tools, such as equity, loans, derivatives, or other products when investing in infrastructure. We employ new, innovative investment approaches and project structures which lead to private sector investment.

Project Process Unsolicited Proposals Investment Team

Investment Process

Investments and any related risks are overseen by our Management Investment Committee and/or the Investment Committee of the Board of Directors at key decision points. The ultimate investment approval rests with our independent Board of Directors. We take a systematic and disciplined approach to project origination and evaluation, with appropriate risk management. We have a multi-stage investment process which includes:

Our team receives investment opportunities from governments and the private sector. Each opportunity goes through our mandate and priority sector filters to determine if opportunities meet base criteria.

Our Investment team perform initial assessment of feasibility, public and fiscal impact to determine whether the investment opportunity can qualify for Project Acceleration funding. During the Advisory and Acceleration stages, the project remains in the appraisal stage, subject to our independent Board’s approval.

Our experts perform a detailed assessment to define the investment commitment, structure, risk allocation, term and pricing. The investment opportunity is reviewed using our Investment Framework. If satisfactory, our team will negotiate a Memorandum of Understanding (MoU) and term sheet for recommendation to our Board.

A dedicated team negotiates the final investment with counterparties and complete the risk evaluation. Once the conditions are met and our Board approves the investment, closing occurs.

Funding occurs over course of the project. Our team of assets management will work with counterparties to monitor performance, results and outcomes, and provide regular reporting.

There are parameters consistently applied to any investment during its lifecycle. For example, parameters include but are not limited to:

Cooperation with federal partners
Due diligence
Investment size and structure
Timing of investment

Investment pricing
Risk transfer
Risk tolerance
Post-investment monitoring

Unsolicited Proposals

We often receive unsolicited proposals (USP) from the private sector and institutional investors for new projects which are within one of our priority sectors.

The USP Framework sets out the processes for receiving, considering and advancing USP in collaboration with the private sector and public sponsors. It allows our team to assist public sponsors in navigating complex projects as an advisor, facilitator and potentially as an investor.

Public sponsors such as agencies and departments from federal, provincial, territorial, municipal and Indigenous governments will play a critical role in the advancement of any USP that address infrastructure priorities in their respective jurisdiction. Opportunities will move to our Investment Framework once an USP receives support from a public sponsor. Learn more about our approach to unsolicited proposals by downloading the framework.

Investment Team

The investment team has substantial expertise across infrastructure classes, and in structuring complex project finance transactions. The team takes a very commercial approach in our discussions with private sector partners and seeks to balance disciplined commercial lending practices, with the achievement of the CIB’s desired outcomes. Team members also have extensive knowledge about our five priority sectors: green infrastructure, clean power, public transit, trade and transportation and broadband. The Investment team's track record of collaboration and partnerships ensures our ability to mobilize private capital, manage risks and pursue infrastructure opportunities benefitting Canadians. Meet our team.

Connect With Us Regarding Potential CIB Investment

Kindly inform us if you have a project aligning with our mandate by contacting us at investments@cib-bic.ca. In your email, it would be helpful to include the following details: the project's sector, anticipated capital cost, investment amount you are seeking, private and public proponents, as well as a concise summary of the project, including its specific location and any involvement from the public sector.

Construction progresses at Oneida Energy Storage site

NRStor

The Oneida Energy Storage project is a historic achievement built on a foundation of respect and equal partnership with the Six Nations of the Grand River. It will help protect our environment, lower electricity costs for Ontarians, and support the economic recovery and future growth of our province and Canada. We are excited to work with the Canada Infrastructure Bank to advance this project as we strive to achieve our shared environmental, energy, and economic objectives.

Annette Verschuren, Chief Executive Officer & Founder

Six Nations of the Grand River

Six Nations of the Grand River is excited to co-develop the Oneida Energy Storage project in collaboration with industry leader NRStor Inc. This innovative project aligns with our community’s core values of protecting Mother Earth and preservation for our future generations. With the financial support of the CIB, this project will be amongst the first of its size to be co-developed by an Indigenous partner and will model a path forward for how private, public and Indigenous partners can work together to create meaningful solutions.

Chief Mark Hill

Six Nations of the Grand River Development Corporation

Six Nations of the Grand River Development Corporation (SNGRDC) is extremely pleased to play a lead role in advancing an energy solution that unlocks value for ratepayers, promotes green house gas reduction, and provides much needed stimulus for our local economy. The Oneida Energy Storage project is an example of the progressive steps SNGRDC is taking to seek out high calibre partners and build new relationships that are reflective of our community’s needs and value.

Matt Jamieson, President and Chief Executive Officer

Northland Power

Oneida is a first of its kind project at the forefront of Canada’s emerging energy storage sector and is paving the way for other projects like it. Oneida is really the blueprint for successful public-private partnership and collaboration. The Canada Infrastructure Bank has shown consistent support for the project through development, financial close, and now, into construction. Their involvement is a meaningful example that demonstrates how government support can help strengthen and stabilize these new categories of investment.

Michelle Chislett, Executive Vice President

Ontario's electricity system is expected to face several challenges over the next decade. Most notably, the Independent Electricity System Operator (IESO) forecasts a significant capacity shortfall by 2025, and there is an increasing need for resources that can quickly ramp up / down to accommodate high levels of intermittent renewable generation.

With the Oneida Energy Storage project, more Ontarians will have access to clean, reliable power capacity. The storage system will draw and store renewable energy during off-peak periods and release it to the grid when energy demand is at its peak. Once in operation, Ontario’s ratepayers are expected to benefit from the facility with reduced need and cost associated with using gas-fired power plants during times of peak demand. The project will help Ontario reduce greenhouse gas emissions by 4.1 million tonnes, or the equivalent of taking 40,000 cars off the road every year.

Requirement

To reduce market price risks borne by the ratepayers, the IESO is currently transitioning to market-based pricing approach. To achieve savings, the IESO avoids entering long-term contracts which are traditionally required to attract sufficient capital to develop power projects. In addition, under the IESO’s assessment, only a limited contract value could be provided while maintaining sufficient ratepayer value

Solution

Our Investment team structured the investment product to absorb some market revenue risks while reducing impacts to ratepayers. We also advised the developers on negotiating key contractual terms with the IESO, including estimating the minimum amount of contracted revenues required to attract sufficient private capital and ensure the financial feasibility.

Throughout the development process, our team consistently provided feedback on key contracts to accelerate the development timeline and to ensure full alignment between all investors.

To facilitate the financing process, our experts prepared market sounding presentations and connected developers to major institutional lenders, leading to a successful debt raise.

Impact

A project in this nature faces many challenges; the IESO is only able to provide a limited amount of contracted revenues to ensure ratepayer value. These revenues are materially lower than what is needed to attract sufficient capital from commercial investors. Our Advisory and Investment experts worked with partners to push the project forward. Without our involvement and investment commitment, there would be insufficient leverage for commercial investors to meet their return requirement.

Investment Process