Banks max out on Enbridge stock offer, boosts financing to $2.3B

The corporate logo of Enbridge Inc. (TSX:ENB) is shown.
The corporate logo of Enbridge Inc. (TSX:ENB) is shown. THE CANADIAN PRESS/HO

CALGARY – Enbridge Inc. (TSX:ENB) says it raised $2.3 billion in its latest stock offering as its syndicate of underwriters fully exercised their option to buy additional shares in the pipeline operator.

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

READ MORE: Calgary energy company Enbridge raises $2 billion to pay down debt

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

Enbridge says it will use proceeds from the sale to reduce its debt.

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

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

READ MORE: Have no new pipelines been built since 2011? It depends who you ask

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