A consortium of Indigenous communities in western Canada is preparing a CAN$1 billion (US$720 million) bond offering to fund the purchase of a stake in TC Energy Corp.’s natural gas pipeline system in Western Canada, according to people familiar with the matter, reports Bloomberg News.
The bond deal may come to the market in the next several weeks, according to the people, who asked not to be identified discussing a private matter. The transaction of the pipeline stake is expected to close in the third quarter, subject to financing and official approval of the participating communities, TC Energy said.
The Alberta Indigenous Opportunities Corporation is providing a CAN$1 billion equity-loan guarantee to support the transaction, a spokesperson said.
A representative for the Indigenous consortium, which comprises 72 communities in Alberta, British Columbia and Saskatchewan, didn’t respond to requests for comment.
The NGTL system and Foothills Pipeline’s assets gather and transport natural gas in western Canada for exports.
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