RBC top underwriter of Canadian corporate bonds in 2012

• National Bank lead provincial dealer for year

By Cristal Cody

Prospect News, Dec. 31 - RBC Capital Markets finished 2012 as the lead underwriter for Canadian dollar-denominated debt offerings, bonds sold abroad and maple bond offerings, according to data compiled by Prospect News.

RBC ended the year as the top dealer of Canadian dollar-denominated corporate bond offerings in the domestic market with a C$34.77 billion, or 20.92%, stake, lower than the C$38.02 billion, or 25.13%, of bonds priced in 2011, data show.

CIBC World Markets ranks as the No. 2 dealer of Canadian dollar deals after it underwrote C$30.66 billion, or 18.45%, of offerings in 2012. In 2011, CIBC underwrote C$25.64 billion, or 16.95%, of the market.

Canadian dollar-denominated deals totaled C$166.19 billion in 2012, higher than the C$151.29 billion priced in 2011, according to the data.

Issuers stayed busy through the final month of 2012, with new high-grade and high-yield offerings priced from Honda Canada Finance Inc., Telus Corp., Trilogy Energy Corp.

In foreign markets, RBC also ended the year as the No. 1 underwriter of Canadian issues with C$11.53 billion, or 12.93%, of offerings in 2012, compared to C$10.47 billion, or 12.67%, of deals sold abroad in 2011, according to the data.

JPMorgan underwrote C$8.87 billion, or 9.94%, of deals sold abroad by Canadian issuers to secure the second top dealer spot in 2012. In 2011, JPMorgan underwrote C$8.6 billion, or 10.4%, of sales.

Over 2012, Canadian issuers priced C$89.19 billion of bond offerings abroad, higher than the C$82.64 billion of bond sales priced in 2011, according to the data.

Canadian issuers such as Bank of Nova Scotia, Methanex Corp. and Inmet Mining Corp. tapped the U.S. investment-grade and high-yield markets.

RBC also ended the year as the top underwriter of maple bond offerings priced domestically by foreign issuers with C$2.06 billion, or 27.69%, of offerings. In 2011, RBC underwrote C$917 million, or 26.07%, of maple bond sales.

TD Securities Inc. secured the second top dealer position with C$1.67 billion, or 22.44%, of maple bond offerings in 2012, according to the data. TD underwrote C$729 million, or 20.73%, of the market in 2011.

Maple bond deals totaled C$7.45 billion in 2012, up from C$3.52 billion sold in 2011.

Issuers such as London-based National Grid plc, New York City-based JPMorgan Chase & Co. and Australian energy infrastructure APA Group borrowing entity APT Pipelines Ltd. tapped the Canadian debt markets in 2012.

In Canada's provincial bond market, National Bank Financial is the top underwriter for 2012 with C$11.53 billion, or 20.95%, of offerings. In 2011, the dealer underwrote C$14.15 billion, or 24.43%, of provincial offerings.

CIBC World Markets finished the year as the second top provincial dealer with a stake of C$10.9 billion, or 19.81%, of the offerings sold in 2012. The dealer brought C$8.38 billion, or 14.46%, of provincial bond sales in 2011.

Provincial bond deals totaled C$55.03 billion in 2012, compared to C$57.92 billion sold in 2011, according to the data.

The provinces of Quebec, Ontario and New Brunswick all priced deals over the year, while Ontario's C$1.75 billion reopening of 3.15% 10-year notes in September was considered a record size for a single tranche sold in Canada.

Year to date, provinces, all currencies

2011 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	National Bank Financial	11.527	32	20.95%	1	14.151	29	24.43%
2	CIBC	10.902	41	19.81%	4	8.375	35	14.46%
3	RBC	9.701	32	17.63%	2	9.554	28	16.50%
4	BMO	6.087	18	11.06%	6	2.890	7	4.99%
5	TD	6.063	23	11.02%	3	9.155	23	15.81%
6	Scotia	4.124	16	7.49%	5	3.191	11	5.51%
7	HSBC	1.560	8	2.83%	9	1.473	4	2.54%
8	Bank of America	1.179	7	2.14%	7	1.980	5	3.42%
9	Morgan Stanley	0.672	3	1.22%
10	Deutsche Bank	0.649	2	1.18%	8	1.637	6	2.83%
	Total	55.032	100	57.921	110
	Average size:	0.550	0.527
Year to date, domestic market, Canadian dollar-denominated deals, Canadian issuers
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	RBC	34.772	134	20.92%	1	38.017	116	25.13%
2	CIBC	30.659	93	18.45%	3	25.641	81	16.95%
3	National Bank Financial	28.261	71	17.01%	5	18.592	48	12.29%
4	BMO	26.546	80	15.97%	4	25.361	57	16.76%
5	Scotia	18.611	69	11.20%	6	11.418	55	7.55%
6	TD	17.488	86	10.52%	2	26.382	86	17.44%
7	Bank of America	3.504	20	2.11%	7	1.675	11	1.11%
8	HSBC	1.792	12	1.08%	13	0.233	6	0.15%
9	BMO Nesbitt Burns	1.319	2	0.79%
10	Desjardins	0.877	9	0.53%	9	1.152	4	0.76%
	Total	166.189	290	151.288	286
	Average size:	0.573	0.529
Year to date, Canadian issuers abroad, all currencies
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	RBC	11.530	42	12.93%	1	10.470	30	12.67%
2	JPMorgan	8.868	42	9.94%	2	8.597	31	10.40%
3	Bank of America	8.042	41	9.02%	7	5.921	23	7.16%
4	Citigroup	7.419	35	8.32%	6	6.001	23	7.26%
5	Barclays	6.727	26	7.54%	4	7.045	24	8.52%
6	Morgan Stanley	5.756	26	6.45%	9	4.317	19	5.22%
7	Scotia	5.016	22	5.62%	13	1.932	7	2.34%
8	HSBC	4.520	21	5.07%	10	4.183	12	5.06%
9	BMO	3.850	12	4.32%	17	1.320	5	1.60%
10	Deutsche Bank	3.609	16	4.05%	11	3.515	12	4.25%
	Total	89.187	116	82.640	96
	Average size:	0.769	0.861
Year to date, Maple bonds
					2011 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	RBC	2.063	9	27.69%	1	0.917	8	26.07%
2	TD	1.672	11	22.44%	2	0.729	7	20.73%
3	CIBC	1.029	5	13.81%	6	0.254	3	7.22%
4	Scotia	0.896	5	12.02%	3	0.384	4	10.91%
5	HSBC	0.766	5	10.28%	8	0.100	1	2.84%
6	Bank of America	0.350	2	4.69%	4	0.312	3	8.88%
7	BMO	0.300	1	4.03%	5	0.271	3	7.71%
8	Rabobank	0.126	2	1.69%
9	Citigroup	0.100	1	1.34%
9	Credit Suisse	0.100	1	1.34%
	Total	7.452	21	3.518	14
	Average size:	0.355	0.251
Prospect News Canadian Bonds Underwriter Rankings

Criteria

• The tables include all underwritten offerings reported to Prospect News.

• All amounts are in Canadian dollars.

• Offerings are included in the time period in which they price.

• Amounts are based on the total sales price (face amount multiplied by the offering price). The full amount is credited to the bookrunner (or lead manager if no bookrunners). For multiple bookrunners (or lead managers), the total value is divided equally among all the firms.

• Each tranche is counted as a separate deal.

• The provinces table includes all bonds sold by Canadian provinces in the Canadian market or abroad; the Canadian domestic market is Canadian dollar deals sold by issuers based in Canada; Maple bonds is non-Canadian issuers selling in Canadian dollars.

• Government of Canada bonds are excluded.

• Convertibles, trust preferreds and preferred stock are excluded.

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