Coastal GasLink Plans C$1 Billion Bond Sale to Fund Pipeline Expansion

Coastal GasLink is preparing to issue a two-part bond sale to generate C$1 billion ($720 million), with the launch expected as early as Thursday. The shorter tranche will raise approximately C$300 million, maturing in 11.25 years, while the longer tranche will secure around C$700 million with a maturity of about 19 years.

Initial pricing discussions suggest a yield of 1 percentage point and 1.15 percentage points above government benchmarks for the respective tranches. In 2024, Coastal GasLink issued a record Canadian-dollar corporate bond for financing the pipeline linked to the LNG Canada terminal. The consortium is also considering a second phase to double LNG Canada's capacity, indicating a significant investment interest in the region's natural gas infrastructure.