Bank of America Corp. has been dropped from the rotation of banks leading Ontario’s Canadian dollar debt sales after the province reviewed support lenders provided to trading its bonds after the initial sale.
Bank of America, the second-largest U.S. lender by assets, will maintain a junior role in those domestic bond sales and can still lead the province’s U.S. dollar and euro bond sales, as well as the province’s Canadian dollar green bonds, according to Charles Sousa, Ontario’s finance minister.
“Our objective in doing syndicate evaluations is to ensure that we have the strongest and broadest possible underwriting teams in place for all bond issuance programs that we have in place in Canada and internationally in order to minimize our borrowing costs,” Sousa said in an e-mailed statement. “This year’s evaluation determined that Bank of America Merrill Lynch fit into the banking group, rather than the management group. Only banks in the management group have the opportunity to lead our domestic bond issues.”