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Enbridge Inc. has agreed to transfer a package of pipelines that carry natural gas and bitumen-thinning diluent to Enbridge Income Fund for a total consideration of $1.76-billion, the Calgary-based company said Monday.

Under the deal, Enbridge said it will receive about $421-million in cash, $878-million in the form of a long-term note payable by the fund bearing interest of 5.5 per cent per year, and $461-million in preferred units of Enbridge Commercial Trust, a subsidiary of the income fund.

"This latest drop down transaction is consistent with our strategy of utilizing our sponsored vehicles as a significant source of low cost funding for our record growth capital program," said Richard Bird, Enbridge's chief financial officer, in a statement. "The drop down will provide $1.2-billion of net funding to Enbridge, of which over $300-million is in the form of equity."

Enbridge Income Fund Holdings entered into a bought deal for $336-million in the form of subscription receipts, the company said. Enbridge said it has subscribed for $84-million of Enbridge Income Fund Holdings' common shares to maintain its interest at 19.9 per cent. However, Enbridge said its overall stake in the income fund will drop from 67.3 per cent to 66.4 per cent as a result of the asset transfer.

Enbridge is pursuing $36-billion of projects it deems commercially secure.