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Selling at least $5 billion of notes
Bloomberg News
Coastal GasLink LP, a pipeline project in Western Canada, is selling at least $5 billion of notes in what is set to be the largest loonie-denominated corporate bond deal ever.
Investors have placed orders for more than $20 billion of bonds, and as much as $7 billion of the securities could eventually be sold, according to people familiar with the matter, who declined to be identified as they’re not authorized to speak about the transaction.
The offering is in as many as 11 parts with maturities ranging between 2027 to 2049, according to a person with knowledge of the transaction. Two of the portions are amortizing securities of at least $600 million each with maturities in 2049, and are expected to price at around 255 basis points above government debt yields.
The Coastal GasLink sale is being led by banks including Bank of Montreal, Canadian Imperial Bank of Canada, Royal Bank of Canada and Bank of America Corp. It is expected to be priced on Tuesday.
Some Indigenous leaders are asking investors not to buy the bond, citing what they say are violations of Indigenous legal rights, environmental and regulatory concerns and financial risks.
Coastal GasLink is owned by TC Energy Corp., KKR & Co. and Alberta Investment Management Corp. Bank of Montreal, Bank of America, Royal Bank of Canada and TC Energy declined to comment, while CIBC, Aimco and KKR couldn’t be reached for comment.
Bloomberg.com
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