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  5. ENB: Hi 5i, I noticed ENB and TRP have both recently issued long bonds out to year 2052/2082. [Enbridge Inc.]
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Investment Q&A

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Q: Hi 5i,
I noticed ENB and TRP have both recently issued long bonds out to year 2052/2082. I don't understand the strategy of a 30yr/50yr bond, please explain. I think these were issued to repay a series of "Preferred Shares", which looks to me to be a bit broken. Can you tell me how many other companies are doing this?

Asked by Keith on March 09, 2022
5i Research Answer:

It is fairly common, as companies strive to lock in low rates before interest rates move up. Demand is still there from pension plans and long term holders. In terms of capital allocation, bond interest is tax deductible, and preferred dividends are not. So many corporations may look to these bonds as tax-advantageous capital.