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.
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.
