Tuesday, April 08, 2008

2008 League Table

Financial Post, Barry Critchley, 8 April 2008

RBC Capital Markets, the investment banking arm of Royal Bank, has emerged, yet again, as the country's leading underwriter for Canadian corporate and government issuers in the annual league tables compiled by the Financial Post. On a full credit to lead manager/book-runner basis -- see attached table for an explanation for the terms used in compiling the tables -- RBC led 202 deals for its clients in 2007. Those deals raised $40.81-billion. In 2006, when RBC was also the winner, the firm was lead manager or ran the books for 264 deals, which raised $41.59-billion.

"We are pleased to be recognized in this fashion. We are pleased to see our clients recognize us and give us their business. That's what our whole organization is focused on, earning that privilege," said Chuck Winograd, the chairman of RBC Capital.

In all, Canadian issuers raised $223.26-billion of capital last year in 1,999 deals. Those financings were done in both the domestic and international markets. And they include all the forms of financing that meet the criteria set up by the FP.

In 2006, the comparative numbers were 1,959 deals and $202.58-billion. Accordingly, in 2007, issuers raised 10% more capital than they did the year before -- on about 3% more deals.

Debt was, by far and away, the most popular form of capital raised last year. In total, corporations and governments raised $167.52-billion in 526 deals.

Of that amount, corporations raised $86.45-billion. Accordingly, a mere $55.83-billion (or about 25% of the total capital raised) was in the form of equity.

As with the 2006 rankings, TD Securities was the runner up in 2007, behind RBC on a full credit to lead manager basis. TD led 107 deals which raised $30-billion.

CIBC World Markets won the bronze medal. It ran the books on 183 deals -- second behind RBC -- which raised $25.7-billion.

These three firms were comfortably ahead of the rest of the pack.

Rounding out the top 10 are three Canadian bank-owned firms -- BMO Capital Markets, Scotia Capital and National Bank Financial.

Four foreign firms also appear in the top 10: Merrill Lynch, Citigroup, Barclays Bank and Deutsche Bank. Merrill, the largest of the foreign dealers operating in Canada, was the leading non-Canadian firm: 29 deals which scooped up $13.4-billion.