Enbridge raises funds from sustainable bonds to promote its climate goals


The entrance to the Enbridge Inc. crude oil tank farm in Cushing, Oklahoma on March 24, 2016. Photo taken March 24, 2016. REUTERS / Nick Oxford / Files

June 28 (Reuters) – Enbridge Inc (ENB.TO) announced Monday it has closed its first sustainability bond (SLB), the first mid-market company to raise sustainability bonds in North America, as it does one step closer to its environmental objectives.

Enbridge said in a statement that as part of a larger funding of $ 1.5 billion, it issued a 12-year $ 1 billion senior note, incorporating emissions targets and d inclusion in the financing conditions.

The energy infrastructure company also said it closed a $ 500 million 30-year senior note issue with a 3.4% coupon.

SLB carries a 2.5% coupon, Enbridge said, adding that the proceeds from the issuance will mainly be used to repay existing debt, partially financing investment projects.

The Calgary, Alta.-Based company released an SLB framework a few weeks ago that outlined the principles of bond issuance and performance metrics that impact its borrowing costs. https://bit.ly/3hw3sQX

Enbridge has come under the scrutiny of environmental activists for arguing for years that there is a risk that its Michigan Line 5 pipeline, built in 1953, will rupture into the Straits of Mackinac. Read more

Reporting by Vishal Vivek in Bengaluru, editing by Sherry Jacob-Phillips

Our Standards: Thomson Reuters Trust Principles.

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