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.