Calgary-based FirstEnergy Capital Corp and SG Corporate & Investment Banking, part of Soci&eaute;té Générale, have formed an innovative partnership that will provide additional depth of service and reach for both FirstEnergy and SG CIB in the area of energy financing.
The partnership, which involves an agreement to jointly market services to FirstEnergy and SG CIB clients, will provide Canadian energy sector companies with a seamless, globally competitive package of financial services encompassing, in particular, mergers and acquisitions, equity financing, debt financing and associated structured finance, hedging and capital markets products.
The agreement, which entails a minority equity investment by Soci&eaute;té Générale in FirstEnergy, does not provide for any Soci&eaute;té Générale involvement in the management of FirstEnergy, but focuses on an alignment of interests between the two firms.
“SG CIB is a global leader in providing banking, derivatives and structured finance services to the energy sector. Our clients will therefore benefit through access to these services from a group that is highly competitive not only in Canada, but globally,” comments John Chambers, managing director and head of corporate finance at FirstEnergy. “We are confident that clients will find SG CIB’s outstanding product platform and global perspective a strong addition to the energy financing product mix in Canada, and are certain many clients will benefit directly from this partnership in the short term.”
The partnership marks SG CIB’s entrance into the Calgary market, and reflects the growing global importance of the North American energy sector and the Alberta-based industry in particular, with its tremendous Oil Sands reserves and substantial capital appetite.
“Soci&eaute;té Générale has been very impressed by the knowledge, depth, ethics and drive of the team at FirstEnergy,” says Edouard-Malo Henry, president of Soci&eaute;té Généraleunparalleled record of servicing the oil and gas industry in Canada. We believe this alliance will truly complement SG CIB’s global commitment to finance the energy sector.”
Ed MoréCanada for SG CIB and will relocate to Calgary from Houston to oversee and develop the firm’s Canadian oil and gas business.
“By opening our new office in Calgary, historically a major centre for oil and gas companies, Soci&eaute;té Générale will further enhance its energy client and sectoral coverage, continuing to bring innovation and expertise in this area,” adds Thomas-Craig Bennett, global head of the oil and gas sector for SG CIB based in Paris.
Jim Davidson, FirstEnergy’s managing director and CEO comments, “The interest of a global player in the Canadian energy sector is testament to the maturation of Canada’s energy-focused capital markets. We are delighted to be collaborating with a global energy bank that understands and endorses our focus on client relationships and our commitment to provide timely support for their capital needs.”
FirstEnergy is Canada’s leading energy focused investment bank, providing full service investment banking to an extensive roster of North American clients from its headquarters in Calgary, Alberta.
Since its inception in 1993, FirstEnergy has participated in over 600 energy industry financings, more than any other Canadian investment dealer, raising capital in excess of US$35bn for the Canadian energy industry.