Canada's Indigenous Groups to Borrow $722 Million for TC Energy Pipeline Stake

(Reuters) — A consortium of Canada's Indigenous communities is preparing a C$1 billion ($721.66 million) bond offering to fund the purchase of a minority stake in TC Energy's natural gas pipeline system, Bloomberg News reported on Thursday, citing people familiar with the matter.

The bond deal may come to the market in the next several weeks, the report added.

Earlier this week, the pipeline operator said it has entered an agreement which will enable an Indigenous-owned investment partnership to purchase a 5.34% stake in the NGTL system and Foothills assets in western Canada.

The deal is backed by the Alberta Indigenous Opportunities Corporation, a provincial crown corporation, and was negotiated by a consortium committee representing 72 communities closest to the pipeline system in Alberta, British Columbia and Saskatchewan.

The transaction is expected to close in the third quarter.

($1 = 1.3857 Canadian dollars)

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