TORONTO, Feb. 23,
2024 /CNW/ - Scotiabank has entered into an agreement
with two Indigenous development corporations and one First Nation
to seek regulatory approval to create and operate a new investment
dealer in Canada. The proposed
investment dealer, to be named Cedar Leaf Capital Inc. ("Cedar Leaf
Capital"), will be majority-owned by three Indigenous
shareholders: Nch'ḵay̓ Development Limited Partnership,
Des Nedhe Financial LP and Chippewas of Rama First Nation and
controlled initially by Scotiabank.
Subject to regulatory approval, Cedar Leaf Capital will be the
first-to-market majority Indigenous-owned investment dealer in
Canada. At formation, 70% of the
equity of Cedar Leaf Capital will be owned by its three Indigenous
shareholders, directly or indirectly, apportioned ~23.3% to each.
It is intended that Cedar Leaf Capital will become wholly
Indigenous-owned, controlled and operated in the future.
Until such time, the firm's operations will leverage Scotiabank's
infrastructure and core enterprise frameworks as it develops its
self-sustaining operations. Once achieved, and subject to further
regulatory approval, Scotiabank intends to facilitate an orderly
transition to reduce the Bank's controlling interest in the
entity.
With necessary approvals, Cedar Leaf Capital will commence
operations as an investment dealer and offer institutional clients
in all provinces and territories of Canada financial advisory services with a
particular focus on acting as a placement agent or underwriter of
Canadian fixed income securities offerings.
Clint Davis
(he/him) will be appointed CEO of Cedar Leaf
Capital. Clint is Inuk from Labrador and a Beneficiary (member of the
community) under the Labrador Inuit Land Claim Agreement. Clint has
more than 20 years of experience with financial institutions and
Indigenous organizations in Canada, driving a strategic vision that
advances Indigenous development corporations and businesses, and
advising Indigenous communities and development corporations on
economic development and capacity building opportunities.
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. An Indigenous-owned and led investment dealer will
foster greater Indigenous participation in the capital markets,
create commercial opportunities for Indigenous communities, and
partner with established market participants to assist them in
meeting their reconciliation commitments.
Reconciliation and deepening relationships with Indigenous
communities are stated priorities for governments and businesses
across Turtle Island. Cedar Leaf Capital will offer a new way for
capital markets participants to address and advance their
reconciliation commitments and support Indigenous advancement.
Scotiabank is committed to Reconciliation and is investing in
meaningful programs for Indigenous Employees, Clients and
Communities. In May of 2023, Scotiabank formalized its commitment
to Truth and Reconciliation by embarking on the development of a
Truth & Reconciliation Action Plan and by establishing a Truth
& Reconciliation team. When completed, the Plan will
articulate our formal steps in the direction of Reconciliation by
supporting pre-existing programs and through the co-development of
new consistent, meaningful and progressive actions intended to
establish relationships of trust between Scotiabank and Indigenous
Employees, Customers and Communities.
Quotes:
Scott Thomson, President and
CEO, Scotiabank
"Reconciliation and deepening relationships with Indigenous
communities are critical priorities and we are immensely proud to
partner with these Indigenous shareholders to work together and
take additional and meaningful steps forward. While the economic
participation of Indigenous communities has seen significant
advancement, much more must be done. Cedar Leaf Capital will
provide an important step to expanding access and opportunities
within capital markets to Indigenous communities."
Clint Davis, Chief Executive
Officer of Cedar Leaf Capital
"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."
Chief Ted Williams, Chippewas
of Rama First Nation
"We are proud to participate in this distinct, unique,
innovative collaboration with Corporate Canada and Indigenous
Leadership in Business."
Sean Willy, President &
CEO, Des Nedhe Group
"Scotiabank and Des Nedhe have a strong existing partnership
which supports English River FNs economic prosperity. Working
together with Rama FN and Nch'ḵay̓ (Squamish) to jointly build this first of its
kind financial institution, is testament to the partners shared
objectives towards Indigenous economic empowerment. We are
very proud to be a founding partner in Cedar Leaf Capital."
Mindy Wight, CEO,
Nch'ḵay̓ Development
Corporation
"This is an exciting opportunity for Nch'ḵay̓ and the
Squamish Nation. As a CPA, and former CFO, I am especially pleased
that Nch'ḵay̓ is involved this ground-breaking, strategic, and
thoughtful partnership with Scotiabank, Rama First Nation, and Des
Nedhe Group, as it advances Indigenous leadership in financial
services."
Loretta Marcoccia, Executive
Vice President, Global Operations and Technology, Scotiabank and
Chair, Cedar Leaf Capital Inc.
"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. 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."
Meigan Terry, Senior Vice
President & Chief Sustainability, Social Impact, and
Communications Officer, Scotiabank
"At Scotiabank, we recognize that the journey of Truth and
Reconciliation must be rooted in respect and co-developed with
Indigenous peoples. In 2023, Scotiabank embarked on the development
of a Truth & Reconciliation Action Plan through which we are
working to co-develop meaningful and progressive actions towards
Reconciliation. The establishment of Cedar Leaf Capital supports
Scotiabank's steadfast commitment to Reconciliation.
Paul Scurfield, Global Head,
Capital Markets, Global Banking and Markets, Scotiabank
"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."
About Cedar Leaf Capital
Inc.
Cedar Leaf Capital Inc. will be the first-to-market majority
Indigenous-owned investment dealer in Canada, 70% owned by its three Indigenous
shareholders and 30% owned by Scotiabank. Cedar Leaf Capital will
be controlled initially by Scotiabank and over time, with
regulatory approval, Scotiabank intends to reduce the bank's
controlling interest in the entity such that it operates as a fully
Indigenous owned and led investment dealer. Cedar Leaf Capital will
offer Canadian institutional clients financial advisory services in
Canada, with a particular focus on
acting as a placement agent or underwriter of Canadian fixed income
securities offerings. The firm's name is derived from the cedar
leaf which is native to many Indigenous communities in
North America and deeply ingrained
in Indigenous cultures. The cedar leaf is a symbol of community,
with the veins representing our connections and relationships.
Inspired by the resilience of the cedar tree, we are committed to
building strong relationships and connections that ensure
prosperity for our clients for generations to come.
About Scotiabank
Scotiabank's vision is to be our clients' most trusted financial
partner, to deliver sustainable, profitable growth and maximize
total shareholder return. Guided by our purpose: "for every
future," we help our clients, their families and their communities
achieve success through a broad range of advice, products and
services, including personal and commercial banking, wealth
management and private banking, corporate and investment banking,
and capital markets. With assets of approximately $1.4 trillion (as at October 31, 2023), Scotiabank trades on the
Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange
(NYSE: BNS). For more information, please visit
http://www.scotiabank.com and follow us on X @Scotiabank.
SOURCE Scotiabank