Enbridge sells C$500 million of debt despite turmoil

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(Reuters)

CALGARY, Alberta (Reuters) - Enbridge Inc said on Thursday it has placed C$500 million ($390 million) in corporate debt with investors in recent days despite market turmoil.

The company, whose pipelines carry the lion's share of Canadian oil exports to the United States, said its pipeline unit sold C$300 million in 10-year notes bearing a 6.62 percent coupon to a group of 30 institutional investors.

As well, Enbridge's gas-distribution unit last week sold C$200 million worth of five-year debentures carrying a 5.57 percent coupon to 32 institutional investors.

Both issues were unsecured and carry an A rating from Canadian rating service DBRS, according to its website. Enbridge said the pipeline unit notes were yielding 6.626 percent at issue, while the gas-distribution debt was sold to yield 5.576 percent.

"Enbridge has done very well at saying 'we are a safe option in tough times' and being very open and transparent about what their financing needs," said Steven Paget, an analyst at FirstEnergy Capital.

While stock and debt markets have not been kind to most companies, Canada's major pipeline companies, backed by firm contracts from their customers, have had little difficulty in raising cash.

Earlier this week, TransCanada Corp , the biggest Canadian pipeline firm, sold C$1.16 billion worth of shares to an underwriting syndicate.

"It's a good time (for companies that) have contracts that are not commodity-price based and have long-term backing," Paget said.

Enbridge, which is in the middle of a C$12 billion expansion program to bring more Canadian oil sands crudes to U.S. refiners, said it also has C$3 billion in untapped credit lines.

"This level of liquidity is sufficient to more than absorb the capital markets funding requirements of our commercially secured development projects over the next five years," Richard Bird, the company's chief financial officer, said in a statement.

Enbridge shares were unchanged at $35.70 midday on Thursday on the Toronto Stock Exchange. The shares have dropped 1.1 percent over the past 12 months.

($1=$1.29 Canadian)

(Reporting by Scott Haggett; Editing by Peter Galloway)