Oil Pipeline Company Enbridge Captures ‘Greenium’ With SLB Debut
- Bonds are first of their kind via a North American pipeline
- Enbridge says it may consider a deal in Canada later this year
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Enbridge Inc.’s first sustainability-linked bond allowed the North American pipeline operator to cut borrowing costs compared to the interest on its regular securities.
The Calgary-based company sold $1 billion of the 12-year securities to yield to 2.54%, that’s at least five basis points tighter than where the company’s regular debt would’ve priced, said Max Chan, Enbridge’s vice president of treasury. The so-called greenium was reached after more than 100 investors took part in the transaction allowing the firm to build an order book of more than three times the issue size, he said.