FP Dealmakers: Bay Street raises highest amount in a decade as debt, equity markets diverge
It was a tale of two very different stories for Canadian capital markets in 2024, with activity in the debt markets reaching record highs amidst a continued decline in the equity space.
Overall, Canada’s financial sector raised about $552.8 billion through 946 deals in 2024, the highest amount raised in the past decade and up 19.5 per cent from $462.4 billion in 2023, according to Financial Post Data.
The total amount of debt raised by corporate companies last year was $280.2 billion, up 11.9 per cent from 2023, while government entities raised $254.2 billion, up 32.2 per cent.
In contrast, capital raised by companies through selling shares declined 6.8 per cent to $17.8 billion in 2024. It was the third consecutive yearly decline and the lowest amount raised in almost a quarter-century.
The stark difference between the two markets is a sign of the economic backdrop, said Rosalind Hunter, co-chair of Capital Markets at Osler, Hoskin & Harcourt LLP, which participated in 28 deals and topped FP Data’s list of law firms providing counsel to debt and equity issuers.
“When the economy is not performing well, and there are these uncertainties and economic indicators that are not improving, it impacts the value of the stock price of issuers … which makes them less likely to want to issue shares at a depressed stock price,” she said. “It’s not a time when they want to have the dilutive effect of issuing more shares.”
Hunter said a lot of companies that “rushed” into the market during the pandemic didn’t perform as well as expected after their initial public offering (IPO), which has “raised the bar” for investors in terms of what they are looking for today.
“They have to be profitable or nearby,” she said. “That really limits
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