Debt issuance in the Canadian market rose during the first half, but equity issuance slumped, reports Thomson Reuters in its latest data.
The firm says that debt capital markets issuance (excluding self-funded deals) in the first half reached $83.5 billion, which is up 4.2% compared to 2012. Moreover, on a quarter-over-quarter basis, debt issuance was up 17.9% in the second quarter from the first quarter.
Government and agency debt accounts for 62% share of overall issuance. Financials are the top-ranked corporate sector, representing 19% of the market, followed by the energy & power sector at 5%.
As usual, RBC Capital Markets is the top underwriter, ranking first in the overall league tables. It’s also tops in the Canadian domestic corporate debt tables, and Canadian cross-border league tables. National Bank Financial placed first in the Canadian government league table.
On the equity side, first half proceeds slipped 2% from the same period in 2012, totaling $14.3 billion from 147 issues, Thomson Reuters reports. Still, second quarter proceeds were up 35% from the first quarter of 2013.
Most of that came in Canadian secondary offerings, which totaled $10.5 billion with 111 deals in the first half. However, this represented a 12.8% decrease in issuance from last year. Retail structured product issuance reached $2 billion for the first half, which is down 35% from the same period last year; and preferred securities issuance totaled $3.9 billion, down 25.8% from 2012.
The real estate sector led the way with overall equity proceeds of $3.5 billion in the first six months of 2013, representing a 25% market share. The energy & power sector captured a 22% share, and the healthcare sector contributed an 18% share of the market.
The top underwriter of the first half was Goldman Sachs & Co, Thomson Reuters reports, noting that it took the number one ranking in Canadian equity & equity related, Canadian common stock & trusts and secondary offerings, due to its lead role in the biggest deal of the year, a $2.3 billion common share issuance by Valeant Pharmaceuticals.
RBC Capital Markets ranked first in the initial public offering and preferred securities league tables. CIBC World Markets placed first in retail structured products.