Coastal GasLink, a pipeline project in Western Canada, is preparing a two-part bond sale to raise C$1 billion ($720 million), according to people familiar with the matter. The financing move aims to support the pipeline's development and operational needs as energy infrastructure projects continue to attract investment in Canada's resource sector.

The bond sale structure suggests the C$1 billion will be divided into tranches, potentially targeting different investor profiles and maturities. This financing approach allows the company to manage debt costs more effectively while securing capital for pipeline construction and maintenance, which remains critical for transporting natural gas to export markets.

Market observers note the timing of this bond sale comes as Canada's energy sector seeks to expand infrastructure despite regulatory challenges. The financing underscores investor confidence in the project's viability and the continuing demand for natural gas infrastructure in Western Canada's energy landscape.