Big banks, asset managers pledge $85B in Canadian infrastructure funds

Private financial institutions and a municipal research body announced infrastructure investment plans this week that collectively total roughly $85bn in Canadian dollars. The announcements span electricity, pipelines, transportation, digital connectivity, critical minerals, and agri-food projects. The commitment periods vary, with one pledge covering ten years and two others set over five years.

Bank and Asset Manager Plans

BMO Financial Group set the largest figure, pledging to mobilize up to $70bn over ten years. The Toronto-based bank listed electricity generation, pipelines, roads, airports, and AI computing as target sectors. “Building Canada has always depended on bold ideas backed by capital,” said CEO Darryl White.

Capital will come from bank financing, debt capital markets, and public equity raises, rather than balance-sheet investment alone. Sun Life Financial Inc. announced a $5bn initiative over five years. About $1.5bn of that is earmarked for Canadian infrastructure equity managed by InfraRed Capital Partners, subject to amendments to the Insurance Companies Act.

Power Sustainable, the Montréal-based asset manager, plans to invest more than $10bn over five years. The figure includes deployed capital, co-investment funds, and third-party debt. The firm runs four strategies, including energy infrastructure equity and agri-food private equity. “Canada represents one of the most compelling investment opportunities in the world today,” said CEO Bruce Heyman.

Municipal Gaps and Research

The announcements come ahead of the federal government’s Canada Investment Summit in Toronto. Power Sustainable chairman Olivier Desmarais noted the country’s ability to attract long-term capital at a global scale.

Research from the Federation of Canadian Municipalities, developed with PSD CityWide Inc., puts a value on local spending. Each dollar spent on municipal infrastructure generates about $1.05 in GDP and more than $2 in overall economic activity, with seven jobs created per $1m invested. A sustained 10-year local investment strategy could permanently raise national economic output by roughly $17bn a year.

Against this potential growth, the FCM puts the municipal infrastructure deficit at approximately $240bn. “At a time when Canada is focused on economic growth, municipal infrastructure is one of the smartest investments governments can make,” said FCM president Tim Tierney, calling it “an economic strategy, not simply an infrastructure strategy.”

Market Context and Summit

Research released by the Federation of Canadian Municipalities in Ottawa on September 10 highlights the scale of the challenge. Boston Consulting Group research showed private infrastructure fundraising concentrating in the largest global funds, with nearly three-quarters of 2025 capital flowing to the 50 biggest vehicles. This concentration contrasts with the need for widespread investment in local municipal projects.