Canada’s capital markets delivered a surprisingly strong performance in 2025, raising the highest amount of money in 15 years despite persistent economic uncertainty and ongoing trade tensions. According to Financial Post data, Canadian issuers raised about C$597 billion across 1 133 deals last year, topping the decade and a half record and underscoring robust investor demand and activity on Bay Street.
A Record Breaking Year for Capital Markets
The year 2025 saw a diverse range of issuers tapping both debt and equity markets, defying expectations that elevated geopolitical risk and tariff pressures would dampen dealmaking. Corporate debt issuance reached C$301.5 billion, its highest level in 15 years, while equity issuance rebounded sharply to C$35.2 billion following a slowdown through 2022–24.
Notably, many of the largest equity transactions were secondary offerings where existing shareholders sell securities, indicating strong investor appetite to participate in well-capitalized Canadian firms. Among these, Restaurant Brands International Inc. raised C$1.7 billion, and GFL Environmental Inc. conducted two large deals, highlighting broad market confidence.
Factors Driving the Uptick
Dealmakers point to several contributors behind the record year:
- CUSMA protections and tariff exemptions helped maintain access to the US market despite headline trade tensions, shielding many Canadian exporters from the worst impacts.
- Sector-agnostic interest from investors in artificial intelligence, mining and industrials diversified sources of capital demand, making 2025 deals less dependent on any single industry trend.
- Secondary market strength, where shares change hands among investors, added liquidity and confidence, supporting midpoint valuations and encouraging further issuance.
This broad interest reflects a shift in investor sentiment compared with recent years, where markets often hesitated amid volatility and policy uncertainty. According to capital markets leaders, issuers and investors alike were eager to return to the market after a period of “waiting on the sidelines,” driving both volume and value of deals.
The Significance of Canada’s Financial Centre Performance
Bay Street, also known as Canada’s financial heart and home to major banks, brokerages and capital markets activity plays a central role in allocating resources across the domestic and international economy. Toronto’s status as a leading financial centre in North America, second only to New York in size and depth, underscores the influence of these record fundraisings on corporate growth and investor returns.
Strong fundraising activity supports:
- Business investment in capital projects, research and expansion.
- Government and corporate debt funding, facilitating infrastructure and public services spending.
- Cross-border finance flows, attracting international interest and participation in Canada’s markets.
Conclusion
Canada’s capital markets outperformed expectations in 2025, raising nearly C$600 billion (the most in over a decade) even as the broader economy faced heightened uncertainty. Diverse deal activity, strong debt issuance and resilient secondary markets helped fuel this record year. For investors and international partners, including those connected with Hungary’s financial and investment community, this performance reflects confidence in Canadian corporate fundamentals and the underlying strength of Bay Street’s financing ecosystem.
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Written for the Canadian Chamber of Commerce in Hungary News Section as part of our ongoing coverage of developments affecting Canadian trade, economy and international partnerships, January 2026