Home > About the Ministry > Ontario Immigrant Investment Corporation (OIIC) Business Plan 2015 - 2018

Ontario Immigrant Investor Corporation (OIIC)
Business Plan 2015 – 2018

1.0 Executive Summary

The Ontario Immigrant Investor Corporation (OIIC) Business Plan captures the key accomplishments in the 2014-15 fiscal year and provides insights into the fund’s main activities anticipated from 2015-18.

Based on the current Credit Facility/Loan Agreement between the OIIC and the Ontario Infrastructure and Lands Corporation (IO), $42M was invested in infrastructure projects and 2,859 jobs have been created with Immigrant Investor Program (IIP) funds that were allocated to IO’s loan program for the 2014-15 fiscal year.

The 2014 Federal budget announced the termination of the IIP. Citizenship and Immigration Canada (CIC) has indicated to the OIIC through formal estimates that there are 73 total outstanding cases to be processed. CIC is committed to processing these remaining cases, which represents a figure of $11,760,550. However, CIC has indicated that the quoted remaining figures are not guaranteed to be approved through the program. This means that the total remaining allocation amount for Ontario may vary from this sum. Ontario can expect to receive its share of the remaining funds in the 2016 calendar year. The repayment of these allocations to CIC will occur after five years, in 2020-21. Accordingly, the OIIC will remain operational until 2020-21 to meet its obligations under the Immigrant Investor Program and is expected to wind up shortly thereafter.

The OIIC will continue to manage its resources wisely and prudently, fulfill its mandate, and take any necessary steps to mitigate risks arising from the termination of the federal Immigrant Investor Program.

2.0 Mandate

The Corporation was established to act as a receiving vehicle for immigrant investor funds, as required by the federal government under the Federal Immigrant Investor Program. Under the IIP, each participating province is required to establish a vehicle to receive and invest immigrant investor dollars for the purposes of “creating or continuing employment in Canada in order to foster the development of a strong and viable economy” and to pay back immigrant investors upon the maturity of their investment. Immigrant investors loan the Corporation money, which is evidenced by a promissory note, and the amount is repaid, without interest, in five years. Each participating province guarantees immigrant investors that the promissory note will be honoured. (Each province is liable for repayment of only its share of the amount invested by the immigrant investors.)

3.0 Governance and Organizational Structure

The Ontario Immigrant Investor Corporation (OIIC) is an operational enterprise of the Ontario government, incorporated on April 30, 1999 under the Development Corporations Act and approved by the federal government as an “approved fund” on June 22, 1999.  The OIIC governance and organizational structure is depicted in the chart below:

The Minister of Citizenship, Immigration and International Trade (MCIIT) is responsible for providing overall government direction to the Corporation through the Chair of the Board of Directors, including:

The OIIC is governed by a Board of Directors, which reports to the Minister of MCIIT.

4. Environmental Scan

Following the federal government’s announcement to review the federal immigration programs in 2011, the government began public roundtable discussions on the federal Immigrant Investor Program (IIP) in April 2012. Following consultations in 2013, the federal government announce in the 2014 budget the elimination of the Immigrant Investor Program. Ontario can expect to receive its share of the remaining funds (maximum $11,760,550) in the 2016 calendar year. Provinces are obligated to adhere to the repayment schedule, which requires that the principal investment be returned to the immigrant investor after five years. As a result, the Ontario Immigrant Investor Corporation will remain operational until 2020-21.

In 2014-15, CIC processed and approved a monthly average of 31.9 applications designated to Ontario. This is a significant decrease from 2013-14, and is the lowest average number of applicants accepted since 2003-04. Given the termination of the IIP, it is expected that investor intake figures will continue to decrease as CIC approves fewer applications on a monthly basis.

The table below provides a summary based on the information provided by CIC of the annual number of immigrant investors since the implementation of the IIP, based on a calendar year.

Calendar Year Immigrant Investors approved
2000 20
2001 56
2002 90
2003 89
2004 524
2005 857
2006 577
2007 980
2008 1,423
2009 1,307
2010 1,702
2011 1,222
2012 897
2013 1,312
2014 502
2015 (forecasted) 39
2016 (forecasted) 36
2017 (forecasted) 0
2018 (forecasted) 0

For the 2014 calendar year, Ontario received the largest amount of the Provincial Allocations from CIC totalling approx. 35.8% ($130M) of total federal allocations as shown in the chart below: 

CIC Allocations to Provinces/Terriories as of December, 2014

Provinces/TerritoriesPercentage (%)
B.C 15.9
Manitoba 8.8
Newfoundland 7.7
Nova Scotia 7.9
New Brunswick 7.6
Saskatchewan 9.7

* Based on Provincial Allocation Report from CIC for the 2014 Calendar Year

Since the inception of the program, Ontario has received approximately 42.3% of total net allocations to participating provinces. 

5.0 Strategies and Activities

The goal of the OIIC is to create or continue employment in Ontario in order to foster the development of a strong and viable economy, as mandated by the regulations under the federal Immigration and Refugee Protection Act (IRPA).

Under the IRPA, each participating province is required to receive and invest immigrant investor dollars for the purposes of “creating or continuing employment in Canada in order to foster the development of a strong and viable economy” and to repay immigrant investors after five years.

In accordance with the signed agreement between Infrastructure Ontario and OIIC, IO’s Loan Program makes low-cost, fixed and floating-rate investments through Ontario’s broader public sector partners to renew and build critical public infrastructure. These investments play an important economic development and job creation role in the Province.   

As per the loan agreement, based on the amount of funds received from CIC, OIIC directs a minimum of $12.5M of the OIIC monthly allocations to IO. If OIIC receives funds in excess of $12.5M in any given month, IO may request additional funds and approval will be provided by the OIIC Board of Directors.  As well, if the monthly amount received from CIC is less than $12.5M, then the shortfall will be made up in the following months, where the funds received are in excess of the $12.5M. In August 2014, IO indicated that it will no longer be accepting funds from the OIIC. The formal Loan Agreement between the OIIC and IO is set to expire on December 23, 2015. The first loan to IO was made in February 2011.

The current floating variable rate in the loan agreement has allowed IO to flow the capital more quickly. IO has been able to offer a lower interest rate to their clients, allowing them to increase the amount of funds being borrowed and invested. The floating rate will be reviewed by OFA on a 3 month basis to ensure there is no risk in repaying back the immigrant investors in 5 years.

By the end of March 2015, OIIC had transferred $42M or 55.5% of CIC allocations received to IO, which supported various economic development projects including:

Recipient Business/Entity Name:

Description of Use of Funds

Number of FTE's* created

Town of Amherstburg

Road construction and repair


Town of Essex

Fire station infrastructure expansion & upgrade


City of Hamilton

Stadium and other infrastructure construction and renovation


City of Vaughan

City infrastructure construction and upgrade


City of Thunder Bay

Communication infrastructure - DSLAM deployment


*FTE’s = full time equivalents

6.0 Performance Measures and Targets

OIIC performance measures:

  1. To ensure that funds are secure and earn a positive return on investments.
  2. To stimulate economic development and job creation through public infra-structure investments

Under the investment strategy (SIIP), a significant portion of the IIP principal is directed to infrastructure investments under Infrastructure Ontario’s Loan Program to support economic development and job creation with targets of 5,000 full-time jobs for every $75 million invested.

7.0 Resources and Staff

Historically, MEDEI staff in the Business Immigration Branch has carried out all of the duties of the Corporation, as appropriate, along with financial support from MEDEI’s Corporate Services Division. However, in February 2015 the OIIC was formally transferred to MCIIT.

Under the transfer to MCIIT, Business Immigration and Selection Branch staff will continue to provide policy and administrative support to the Corporation, ensuring the Agency continues to meet Agency and Appointments Directive (AAD) requirements. MEDEI’s Corporate Services Division will continue providing financial tracking and reporting support to the Agency. In addition, the Business Immigration Branch will monitor changes at the federal level.

8.0 Financial Projections

Financial projections for the OIIC assume that the federal IIP will continue to wind-down, and as a result investor intake figures and monthly allocation amounts will decline significantly from recent yearly averages.

Number of Investors:  

Participating Provinces/Territories:

The current federal Immigrant Investor Program (IIP) came into effect on April 1, 1999.  By virtue of the Canada-Quebec Accord, Quebec has its own separate program.

Ontario, Prince Edward Island, British Columbia, Manitoba, Newfoundland and Labrador, Nova Scotia, Saskatchewan and New Brunswick are currently participating provinces in the IIP. If all the provinces and territories outside of Quebec choose to participate in the IIP, Ontario’s share would be reduced to 27.9%. 

Investment Policy:

Funds will continue to be managed by OFA to ensure that the outstanding obligations to immigrant investors can be met in their entirety and that OIIC funds accumulate the interests in order to be able to meet the repayment schedule to CIC.

Forecasted Statement of Operations* – March 31 ($M)

  2015-2016 2016-2017 2017-2018
Interest Income 17.2469 10.9127 8.4797
Total revenue 17.2469 10.9127 8.4797
Amortization of deferred commission 8.4644 5.6974 3.9741
Investment Management fee 1.7846 1.4197 1.1294
Banking fees .003 .003 .003
Total expenses 10.2520 7.1202 5.1066
Excess of revenues over expenses 6.9949 3.7925 3.3731
Accumulated surplus, beginning of year 115.9457 122.9406 126.7331
Accumulated surplus, end of year 122.9406 126.7331 130.1062

* Forecasted figures are taken from the 2015-16 MEDEI PRRT.

9.0 Risk Analysis and Contingency Planning

The following risks have been identified and contingencies put in place:

  1. Withdrawal of participating provinces/territories prior to all money being allocated.
    • Funds are allocated based on the respective GDP’s of participating provinces and territories. Should any jurisdiction withdraw from the program before it is finalized, Ontario would receive a larger portion of the funds, which would alter financial projections.
  2. Limited capacity to direct additional funds to economic development projects.
    • IO has indicated that they will no longer be taking any new funds from the OIIC. Given that the Loan Agreement is set to expire in December 2015, and that the federal IIP has been terminated and is in a wind-down phase it is not anticipated that this poses a serious risk to the Province of Ontario.

10.0 Communications Plan

Business Immigration will continue to coordinate communication amongst those areas involved in or impacted by the elimination of the IIP.