DBRS Rates Enbridge Inc.’s Preferred Share Issue at Pfd-2 (low), Stable Trend

DBRS has today assigned a rating of Pfd-2 (low) with a Stable trend to Enbridge Inc.’s (Enbridge’s or the Company’s) $500 million Cumulative Redeemable Preferred Shares, Series B (the Series B Preferred Shares), which have a dividend rate of 4.0% per annum, payable quarterly for the initial five-year period ending June 1, 2017. The dividend rate will reset on June 1, 2017, and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.40%. The Series B Preferred Shares are redeemable by Enbridge on June 1, 2017, and on June 1 every five years thereafter.

The Series B Preferred Shares are being issued under the Prospectus Supplement that will be filed on September 23, 2011, to the Short Form Base Shelf Prospectus dated October 28, 2010, and are expected to settle on September 30, 2011. The Series B Preferred Shares will rank equally with all outstanding Cumulative Redeemable Preferred Shares and with any future preferred shares issued by the Company. Net proceeds from the offering will be used to partially fund capital projects, for other general corporate purposes and to reduce the short-term indebtedness of Enbridge and its affiliates.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating North American Pipeline and Diversified Energy Companies, which can be found on our website under Methodologies.