BNS Bank of Nova Scotia

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.  

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."

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.

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