Firm will be first-to-market majority Indigenous-owned investment dealer in Canada
A new investment dealer firm will be the first in Canada to be majority Indigenous owned.
The planned launched of Cedar Leaf Capital Inc. follows an agreement between Scotiabank, which will create and operate the firm, and two Indigenous development corporations and one First Nation. They will seek regulatory approval for the firm.
Cedar Leaf Capital will be 70% owned (directly or indirectly) by three Indigenous shareholders - Nch'ḵay̓ Development Limited Partnership, Des Nedhe Financial LP and Chippewas of Rama First Nation – and controlled initially by Scotiabank with the intention for it to be 100% Indigenous owned, controlled, and operated in the future through an orderly reduction of Scotiabank’s holding over time.
"With a team of seasoned capital markets and risk management professionals, Cedar Leaf Capital will seek to provide differentiated debt capital markets advice and execution services to governments and corporate clients and to establish roles in dealer syndicates on new bond issue transactions with the near-term ambition of taking lead roles, particularly in Indigenous-related financings," said Paul Scurfield, Global Head, Capital Markets, Global Banking and Markets, Scotiabank.
The aim of the new investment dealer is to offer institutional investors financial advisory services in all provinces and territories across Canada, specifically focusing on acting as a placement agent or underwriter of Canadian fixed income securities offerings. It will also encourage greater Indigenous participation in capital markets.
"As the first Indigenous owned and led investment dealer in Canada, Cedar Leaf Capital's objectives will extend beyond those of a traditional market intermediary,” explained Loretta Marcoccia, Executive Vice President, Global Operations and Technology, Scotiabank and Chair, Cedar Leaf Capital Inc. “Some of the largest corporations in Canada, and the vast majority of provincial/territorial governments and agencies, have an expressed desire to work with Indigenous-owned businesses. Cedar Leaf Capital opens the door to a broad group of corporate and government borrowers and will provide an important step forward in support for the Indigenous economy."
Recently, the Indigenous Prosperity Foundation announced its inaugural Board of Directors, a significant step in its initiative to promote Indigenous empowerment and economic prosperity
Cedar Leaf CEO
Heading up the new firm will be CEO Client Davis, who is Inuk from Labrador, and a Beneficiary (member of the community) under the Labrador Inuit Land Claim Agreement. Davis has more than 20 years of experience with financial services and Indigenous organizations.
"Cedar Leaf Capital will actively seek to establish roles in dealer syndicates on new bond offerings, acting in broadly syndicated offerings with the ambition to grow into lead roles. In addition, we will seek to identify, attract and develop Indigenous talent, serving as a training ground for Indigenous young people who are considering a career in capital markets and finance. Cedar Leaf Capital will exemplify reconciliation in action."
