Cedar Leaf Capital, Canada’s inaugural majority Indigenous-owned investment dealer, is scheduled to commence operations by the end of October following the receipt of all necessary regulatory approvals. The company’s offerings will include underwriting services for private placements of new debt issues, potentially expanding into advisory services and equity capital markets.
Notably, Scotiabank, a prominent member of Canada’s Big Six Banks, holds a controlling interest in the new dealer. The stock performance of Scotiabank has shown a year-over-year increase of 22.33%, but a decrease of 2.73% since 2019.
The establishment of Cedar Leaf Capital stems from a partnership announced in February 2024 involving Nch’ḵay̓ Development, Des Nedhe Group, Chippewas of Rama First Nation, and Scotiabank as the major shareholder. The primary objective of this collaboration is to enhance Indigenous participation in Canada’s capital markets through the issuance of new debt offerings and potential expansion into other financial services.
According to a recent news release, Cedar Leaf Capital aims to forge alliances with established market entities to provide tailored financial advice to Indigenous communities, promote economic growth, and support reconciliation commitments. The leadership of the investment dealer will be under the guidance of Clint Davis, a seasoned professional with over two decades of experience in financial institutions, Indigenous organizations, and community development.
Aligned with Scotiabank’s Truth & Reconciliation Action Plan, Cedar Leaf Capital is expected to transition into a wholly Indigenous-owned and operated entity, with the Big Six Bank planning to reduce its stake once the business attains self-sustainability.
In a statement, Davis emphasized the goal of fostering economic sovereignty and empowerment for Indigenous communities through meaningful partnerships and effective financial solutions. Scot Thomson, President and CEO of Scotiabank, highlighted the importance of the partnership in expanding opportunities within capital markets for Indigenous communities and promoting inclusivity and respect in the financial sector.
Scotiabank, with a focus on delivering sustainable growth and maximizing shareholder return, offers a wide range of financial services across various sectors. As of July 2024, the bank holds assets totaling C$1.4 trillion.
Scotiabank’s stock performance has shown a 0.89% increase, trading at C$73.51 per share at 10:09 am ET. While the stock has seen a year-over-year gain of 22.33%, it remains down by 2.73% since 2019.
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Photograph source: Scotiabank.
