Taxation in Capital Markets

Canadian and foreign issuers, financial institutions, institutional investors, investment funds and other capital markets participants partner with Osler’s Taxation Group on a broad range of taxation matters of importance to a full range of capital markets transactions, from the issuance of equity and debt, to the structuring of securitizations, derivatives and other novel financial instruments.

Our team is known for developing innovative instruments that permit our clients to achieve their financing objectives. Osler pioneered the technology for rating agency hybrid notes in Canada in the offering for Emera in 2016.  These notes were the first of their kind to be used by a Canadian issuer. Osler expanded on this innovation to develop Additional Tier 1 (AT1) Limited Recourse Capital Notes (aka LRCNs), a ground-breaking new instrument designed to foster a more liquid global institutional AT1 market for Canadian financial institutions.

Osler has acted for the issuer on LRCN offerings by Royal Bank of Canada, BMO, The Bank of Nova Scotia, National Bank of Canada and Laurentian Bank. In the area of derivative transactions, our team advises on the use of derivatives as hedging instruments, as a substitute for direct investment and in the context of complex trades and financings by taxable and tax-exempt entities situated in Canada and elsewhere. Our team is well-versed in managing the regulatory components of transaction structuring, such as Basel III compliance, rating agency treatment of hybrid securities, and capital adequacy requirements. The unique commercial and regulatory complexities faced by issuers afford us an opportunity to deliver innovative tax advice, develop novel structures, and successfully bring them to market for our clients.