Coastal GasLink’s $7.15 billion bond issue, largest in Canadian history

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Calgary-based TC Energy Corp., the company behind the Coastal GasLink pipeline, says it has completed the largest corporate bond offering in Canadian history.

The company says it closed a $7.15 billion refinancing of its existing construction loan that helped pay for capital costs related to the construction of the Coastal GasLink pipeline.

The $14.4 billion, 670 kilometer project was completed last fall and is one of the largest energy infrastructure projects in recent Canadian history.

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TC Energy says the refinancing was achieved through a bond offering that was approximately 3.6 times oversubscribed, a level of interest it says is “unprecedented” for the energy infrastructure sector.

The Coastal GasLink project has faced numerous construction hurdles and cost overruns, and TC Energy has come under pressure from investors and credit rating agencies to reduce its debt levels following the completion of the project.

But the company says restructuring construction loans with bond proceeds is standard post-construction activity for large projects.

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