Banks take maximum amount of Enbridge stock, boosting financing to $2.3 billion

CALGARY – Enbridge Inc. says it raised $2.3 billion in the latest stock offering since it’s syndicate of underwriters fully exercised their option to buy additional shares within the pipeline operator.

The Calgary-based company had initially planned to raise $2 billion, but the underwriters – including Canada’s five biggest banks – bought one more 7.4 million shares.

The underwriters paid $40.70 per share for that stock. The group includes RBC Capital Markets and it is counterparts at BMO, CIBC, Scotiabank and TD. It also includes Credit Suisse, one of Switzerland’s biggest banks.

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Enbridge says it’ll use arises from the sale to reduce its debt.

The company also expects the cash is going to be sufficient to support its growth program through the end of 2017.

Enbridge has a number of projects within the planning stages, including the Northern Gateway pipeline across British Columbia. It completed 14 projects worth $8 billion in 2015.