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US NEWS 
By Chunzi Xu
Coastal GasLink, a pipeline project in Western Canada, is readying a two-part bond sale to raise C$1 billion ($720 million), according to people with knowledge of the matter.
The shorter portion of the high-grade bond sale is set to mature in 11.25 years and the size is around C$300 million. Initial pricing talk is around 1 percentage point more than government benchmarks, the people said, asking not to be identified as they aren’t authorized to speak publicly.
The longer part of the bond will raise around C$700 million and mature in about 19 years. Initial pricing is being discussed at around 1.15 percentage point more than government bonds, according to the people.
Coastal GasLink in 2024 sold what was then the largest Canadian-dollar corporate bond to finance the pipeline, which transports natural gas from the Montney shale formation in Western Canada to the Shell-led LNG Canada terminal on the British Columbia coast. The firm is working on the Cedar Link expansion, which connects to a smaller export facility in the same area.
The consortium behind LNG Canada is currently mulling a decision to build a second phase for that complex in British Columbia. If it goes ahead, the second phase would double LNG Canada’s capacity.
Coastal GasLink’s bond sale will likely hit the market as soon as Thursday, around the time that investors are expecting to receive large coupon payments from maturing Canadian bonds, the people said.
A representative for TC Energy, operator and co-owner of Coastal GasLink, didn’t immediately respond to a request for comment. Other owners include KKR & Co. and an Alberta pension fund.
(Updates with information about LNG Canada in fifth paragraph)
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