Enbridge Inc.

Enbridge Inc.

January 16, 2007 16:19 ET

Enbridge Announces $ 523.1 Million Common Equity Offering

CALGARY, ALBERTA--(CCNMatthews - Jan. 16, 2007) -


Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it has entered into an agreement with a group of underwriters to sell 13.5 million treasury common shares at $ 38.75 per common share for distribution to the public. Closing of the offering is expected on or about February 2, 2007. The Enbridge Inc. Board of Directors also today declared a quarterly dividend of $ 0.3075 per common share, payable on March 1, 2007 to shareholders of record on February 15, 2007.

Commenting on the transaction, Enbridge Executive Vice President, Chief Financial Officer & Corporate Development, Stephen J. Wuori said, "The common equity offering and 7% dividend increase reflects our confidence in the future growth of the company." He further noted, "With our recent announcement of industry support of the US$1.3 billion Southern Lights project and the continued favourable progress on other projects, Enbridge is in a period of unprecedented organic growth. Enbridge is committed to finance this growth in a prudent manner, and does not believe a planned monetization in the income trust sector is realistic in the near term due to market uncertainty."

The offering is being made only in Canada by means of a prospectus. Proceeds will be used to reduce outstanding indebtedness, to make investments in subsidiaries and for general corporate purposes.

The syndicate of underwriters is led by Scotia Capital Inc. and CIBC World Markets Inc.

Enbridge will also make an offer to enter into a private placement agreement to sell an additional 1.5 million common shares to Noverco Inc. at the same price as the public issue. The placement, if accepted by Noverco, is expected to close on or about February 5, 2007, and would maintain Noverco's and its affiliates' ownership interest in Enbridge at approximately 9.5%. The closing of the private placement is conditional upon the closing of the public offering.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the common shares in any jurisdiction. The common shares offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. The Company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. Enbridge employs approximately 5,000 people, primarily in Canada, the United States and South America. Information about Enbridge is available on the Company's website at www.enbridge.com.

Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except to the extent required by applicable securities laws and regulations, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

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