Canada Indigenous Group Sells Bonds for Enbridge Pipelines Stake

Athabasca Indigenous Midstream LP raised about C$865.2 million ($630.2 million) by selling bonds. Bank of Montreal arranged the transaction, which priced at 270 basis points over the Canadian yield curve.

The transaction comes as all-in yields in the Canadian-dollar corporate bond market stand within one basis point of the highest level since 2009. Central banks have doubled down in their fight to reduce inflation, raising concerns about a potential global recession that risks being exacerbated by an energy crisis in Europe.

Earlier this month, the issuer carried out investor outreach organized by BMO. The proceeds of the deal will be used to buy a stake in a group of pipelines that cross the Athabasca region in Alberta, which in turn feed into the larger Enbridge pipeline system, the people said.

A spokeswoman for BMO referred questions to Enbridge. A press officer at Enbridge didn’t immediately reply to requests for comment.