First Nations ETF Limited Partnership: Presale Report

DBRS Limited (DBRS) assigned a provisional rating of BBB (high) with a Stable trend to the Series 1A-2041 Notes (largely targeting Canadian investors) and the Series 1B-2041 Notes (largely targeting U.S. investors) (collectively, the Senior Notes) totalling approximately [$545 million] to be issued by First Nations ETF Limited Partnership (the Issuer), a non-taxable special-purpose vehicle (SPV). Both tranches of the Senior Notes will be denominated in Canadian dollars and rank equally. The fixed-rate Senior Notes will fully amortize and mature on December 31, 2041. The Issuer will use the Senior Note proceeds to primarily fund the acquisition of a 49% ownership interest in Thebacha Limited Partnership (ProjectCo) from its current owners, Suncor Energy Oil Sands Limited Partnership (SEOSLP; unrated) and Suncor Energy Inc. (Suncor; rated A (low), Stable. See notes below). SEOSLP is a subsidiary of Suncor, which is Canada’s largest integrated oil and gas (O&G) company. The Issuer is co-owned by wholly owned subsidiaries of Fort McKay First Nation (FMFN; 70%) and Mikisew Cree First Nation (30%, and together with FMFN, the Sponsors), two significant First Nations in Alberta. This landmark transaction will set a precedent for future partnerships between the First Nations and the O&G industry in Canada. After the transaction closes, Suncor and SEOSLP will collectively retain a 51% ownership interest in ProjectCo.