Canadian bank-owned national firms completed a larger share of Canadian oil and gas industry financings in 2002 (46% of C$10 billion) than in 2001 (30% of C$8.1 billion), with a bulk of the increased share as a result of debt deals, according to an analysis by investment-banking firm Sayer Securities Ltd., Calgary. The C$10 billion raised in 2002 consisted of C$7.0 billion of debt, C$1.6 billion of equity and C$1.4 billion of royalty income trust (RIT) financings, the firm reports. The C$8.1 billion raised in 2001 was C$5.4 billion of debt, C$1.3 billion of equity and C$1.4 billion of RIT financings. Firms owned by Canadian banks were the most active in debt financings in 2002; they raised C$3.63 billion (52% of total upstream debt issued), compared with C$1.47 billion in 2001 (27%), the firm adds. U.S.-based dealers dominated debt financings in 2001 (53% of the total) but contributed only 37% in 2002. As for equity deals, dealers owned by Canadian banks also saw increased market share in 2002 (17% or C$265 million) than in 2001 (5% or C$64 million). TD Securities Inc. was the most active in 2002, followed by CIBC World Markets Inc. and BMO Nesbitt Burns Inc. In both years, Canadian firms did the most RIT financings (62% or C$880 million). The top three dealers in 2002 were CIBC World Markets, Scotia Capital Inc. and BMO Nesbitt Burns, each with more than C$140 million. Of the remaining RIT financings, Canadian independent investment dealers' market share grew in 2002 to 22% or C$310 million, from 18% or C$250 million in 2001. Canaccord Capital Corp. was the most active in 2002, followed by FirstEnergy Capital Corp. and Dundee Securities Corp. Canadian independent dealers were also leaders in equity financings in 2002 (47% or C$736 million), from 2001 (35% or C$443 million). The top three independent investment dealers in total dollar value of equity deals were Griffiths McBurney & Partners, Peters & Co. Ltd. and FirstEnergy Capital; they raised a total of C$437 million-more than double the C$215 million they raised as a group in 2001. Through May of this year, U.S. dealers are increasing their role-in RIT financings, at least. During the first five months of 2003, they were responsible for raising C$1.8 billion for RITs (23% of the total), compared with C$500 million (16% of the total) during the first five months of 2003. In April, Lehman Brothers was the lead placement agent for Pengrowth Energy Trust's C$292-million private placement of senior unsecured notes to a group of American institutional investors. In May, Merrill Lynch was sole placement agent for PrimeWest Energy Trust's C$175-million private debt financing. However, U.S. dealers are at a bit of a disadvantage in raising money for RITs, at least from non-Canadian sources: Canadian law requires that ownership of at least 51% of a RIT's units be held by Canadians. "Some RITs, such as Provident Energy Trust, have announced they may be approaching this threshold," says Frank J.D. Sayer, principal. In numbers of all types of deals in 2002, Griffiths McBurney & Partners participated in the most (46) and was the lead dealer in 43 of these. FirstEnergy Capital was second, taking part in 33 and leading in 13. Third was Yorkton Securities Inc., which was involved in 28 deals and led 11. -A&D Watch