Enbridge Inc., proud issuer of many preferred shares, is issuing equity:
Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it has entered into an agreement with RBC Capital Markets and Scotiabank (“the Underwriters”) to sell 10,850,000 treasury common shares, on a bought deal basis, at $46.11 per common share for distribution to the public. Closing of the offering is expected on or about April 16, 2013.
Enbridge has granted the Underwriters an option, exercisable at any time up to 48 hours prior to closing of the offering, to purchase up to an additional 2,170,000 treasury common shares at $46.11 per common share.
“Since the long-term funding plan discussed at our investor conference last fall we have achieved greater than expected progress in the development of attractive new growth opportunities, including those already announced and those yet to be” said J. Richard Bird, Enbridge Executive Vice President, Chief Financial Officer & Corporate Development. “An update to our funding plan now indicates an incremental equity requirement over the 2012-2016 period. The common share offering today continues our practice of maintaining a very manageable forward funding requirement. After the common share offering, and our recent preferred share issue, our net forward equity requirement stands at $1.9 billion through 2016, which we expect to accommodate through additional preferred share issues and asset monetizations. The additional growth investments will contribute to sustaining Enbridge’s industry-leading EPS growth rate through 2016 and well beyond.”
Today’s prize for precious handwringing goes to The Chartered Institute for Securities & Investment:
Thousands of financial sector workers risk being frozen out of the industry unless they pass mandatory tests measuring their personal ethics and integrity.
The Chartered Institute for Securities & Investment (CISI), a London-based professional body for individuals working, or seeking careers in wealth management and capital markets around the world, wants all of its members to undergo integrity screening or face losing their membership, as it battles to restore public faith in finance.
Until now, only individuals offering financial advice had to take such a test as a condition of their CISI status and to comply with U.K. rules on how investment funds are sold to savers.
Bankers working in areas like corporate finance and mergers and acquisitions, and traders in bonds, shares and derivatives have no such regulatory requirements imposed upon them.
But CISI said on Tuesday that systematic checks on the ethics and integrity of workers across the entire financial services industry were long overdue.
Sadly, it is impossible to determine integrity through a test. Ten percent of any population will cheat as soon as they think they can get away with it. Ten percent will not cheat, no matter what happens. The rest might cheat, given the right combination and severity of circumstances. And you cannot tell in advance who is who. The instigators of this paperwork exercise recognize this, but are doing it anyway:
Martin Wheatley, head of Britain’s Financial Conduct Authority, welcomed the CISI initiative but skeptics said the test would only prove that bankers know how they should act, not whether they actually would apply those ethics on a daily basis.
“No test can guarantee how someone will behave subsequently. But our aim is to make people aware of how they should behave when faced with difficult situations,” Mr. Culhane said.
There was a wide disparity among type in the Canadian preferred share market today, with PerpetualPremiums up 7bp, FixedResets winning 20bp and DeemedRetractibles flat. Volatility was on the low side, but comprised entirely of winning FixedResets. Volume was high and all top-six places were held by FixedResets.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1139 % | 2,614.6 |
| FixedFloater | 4.10 % | 3.46 % | 29,464 | 18.34 | 1 | 0.6084 % | 3,963.1 |
| Floater | 2.66 % | 2.87 % | 77,120 | 20.10 | 4 | -0.1139 % | 2,823.1 |
| OpRet | 4.79 % | 0.58 % | 53,080 | 0.21 | 5 | 0.0309 % | 2,613.1 |
| SplitShare | 4.81 % | 4.00 % | 135,570 | 4.16 | 5 | -0.0646 % | 2,952.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0309 % | 2,389.4 |
| Perpetual-Premium | 5.17 % | 1.64 % | 89,197 | 0.56 | 32 | 0.0707 % | 2,375.6 |
| Perpetual-Discount | 4.86 % | 4.83 % | 168,422 | 15.75 | 4 | 0.4087 % | 2,678.0 |
| FixedReset | 4.89 % | 2.49 % | 287,936 | 3.26 | 80 | 0.2039 % | 2,522.4 |
| Deemed-Retractible | 4.86 % | 2.30 % | 127,151 | 0.38 | 44 | 0.0010 % | 2,456.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.A | FixedReset | 1.01 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-31 Maturity Price : 25.00 Evaluated at bid price : 26.92 Bid-YTW : 2.49 % |
| HSE.PR.A | FixedReset | 1.18 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2016-03-31 Maturity Price : 25.00 Evaluated at bid price : 26.61 Bid-YTW : 2.23 % |
| VNR.PR.A | FixedReset | 1.18 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-10-15 Maturity Price : 25.00 Evaluated at bid price : 27.35 Bid-YTW : 2.39 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.P | FixedReset | 169,343 | Jacob Securities (who?) crossed 100,000 at 25.18. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.23 Bid-YTW : -4.07 % |
| TRP.PR.D | FixedReset | 118,636 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2019-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.99 Bid-YTW : 3.35 % |
| BNS.PR.Z | FixedReset | 94,566 | TD crossed 12,400 at 24.90. National crossed 59,900 at 24.95. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.93 Bid-YTW : 2.96 % |
| TRP.PR.A | FixedReset | 60,357 | National crossed 30,000 at 25.65. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2043-04-04 Maturity Price : 23.88 Evaluated at bid price : 25.65 Bid-YTW : 3.02 % |
| ENB.PR.T | FixedReset | 47,216 | Scotia crossed 40,000 at 26.10. YTW SCENARIO Maturity Type : Call Maturity Date : 2019-06-01 Maturity Price : 25.00 Evaluated at bid price : 26.00 Bid-YTW : 3.36 % |
| SLF.PR.G | FixedReset | 45,950 | National crossed 33,700 at 25.50. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.52 Bid-YTW : 2.80 % |
| There were 45 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| HSE.PR.A | FixedReset | Quote: 26.61 – 27.61 Spot Rate : 1.0000 Average : 0.6226 YTW SCENARIO |
| GWO.PR.F | Deemed-Retractible | Quote: 25.59 – 25.87 Spot Rate : 0.2800 Average : 0.1856 YTW SCENARIO |
| BAM.PF.A | FixedReset | Quote: 26.21 – 26.50 Spot Rate : 0.2900 Average : 0.2156 YTW SCENARIO |
| BNA.PR.E | SplitShare | Quote: 25.55 – 25.89 Spot Rate : 0.3400 Average : 0.2712 YTW SCENARIO |
| TCA.PR.Y | Perpetual-Premium | Quote: 51.60 – 51.90 Spot Rate : 0.3000 Average : 0.2313 YTW SCENARIO |
| TD.PR.E | FixedReset | Quote: 26.06 – 26.24 Spot Rate : 0.1800 Average : 0.1153 YTW SCENARIO |